Commentary

Our insights into Canadian and global credit markets are key to our investment process.
Visit this page every week to stay up to speed on what’s happening in credit.

OUR LATEST HIGHLIGHT IN CORPORATE CREDIT

Highlights from the Week in Corporate Credit:
July 27 – 31, 2020

Global credit spreads drifted modestly wider in the final week of July, capping what has been another very strong month for the asset class.  In the US, the Pharmaceutical sector outperformed while industrials and energy underperformed. New issuance was steady with just under $7bn of primary supply across nine deals. The highlight of the week was a jumbo long-maturity deal from AT&T accompanied by a tender for most of their bonds maturing before 2025. The deal was well received and finished the week about 10 bp tighter. Issuance is expected to pick up as we enter August with around $75bn of supply coming in the first two weeks post-earnings blackout.

Canadian credit outperformed last week as earnings beats from the likes of Molson Coors and UPS snapped select credits tighter by up to 40 bp.  The highlight of the week was a new issue from Reliance LP, printing 430mm of a 7.5y at G+230. The deal was very well received and finished the week 13 bp tighter while tightening the issuer’s outstanding secondary debt as well.

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