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Top Insights of the Week:
Ending 9/10/21

Top weekly insights from Solve Advisors’ Bank Loans, Municipal Bond, and Corporate Bond market summaries.

In this week’s market summaries, SolveQuotes composite data showed that UNIFRAX EUR TL B up 2.1% from $96.15 to $98.16 as Fitch assigns ‘B’ First-Time IDR and PORT OF MORROW OR TRA is this week’s Muni loser, as historically high natural gas prices force distributors to enact new strategies to retain customer base. Read below for more weekly insights within the Bank Loan, Municipal Bond, and Corporate Bond markets.

Bank Loan Market Summary

UNIFRAX EUR TL B is this week’s winner, up 2.1% from $96.15 to $98.16 as Fitch assigns ‘B’ First-Time IDR. Fitch indicated a positive outlook with their leading position in thermal management, specialty filtration, battery materials, and other ESG applications.

Energy: Oil & Gas was this week’s top-performing industry, up 1.1% as U.S. Gulf Coast offshore rigs start recovery process following shutdowns caused by Hurricane Ida.

Municipal Bond Market Summary

PA TURNPIKE COMM is this week’s winner, up 2.94% from $104.37 to $107.43 as transportation increases along the key east-west corridor.

PORT OF MORROW OR TRA is this week’s loser, down -1.99% from $103.54 to $101.48 as historically high natural gas prices in recent months force distributors to enact new strategies to retain customer base.

CALIFORNIA ST ranked on the Quote Volume list this past week, increasing from 18 to 47 quotes as the state looks to sell $2.1b of bonds as new issues over the next month accelerate.

IG & HY Corporate Bond Summary

Edison Intl (EIX) increased 3.6% from $100.64 to $104.25 last week after California’s record-breaking power prices show the market’s desire for more reliable gas generation and highlight the overall value of fossil fuel.

Cummins (CMI) bonds fell 2.7% from $146.45 to $142.45 last week following talks of potential tax changes and effects on the personal and corporate level across companies in U.S. machinery & construction.

Consumer Services was a top performing industry last week with overall 5yr yields down 25 bps given the continued pace of expansion of consumer activity across geographies boosted by looser pandemic restrictions and higher vaccination rates.

Peabody Energy Corp. (BTU) increased 4.5% from $80.72 to $84.37 last week as demand for U.S. coal exports and natural gas increases, and industrial demand for energy recovers from its pandemic slump.

Wesco Aircraft Holdings (WAIR) decreased 8.4% from $71.32 to $65.34 last week following a downgrade of the company’s overall credit ratings given pronounced earnings and cash flow pressures during 2020 due to disruptions from the aftermath of the coronavirus crisis.

The Automotive industry was the top performing industry last week with prices up 0.7% as cooperation between semiconductor companies and the automotive industry continues to grow, and recognition that cars are becoming ever-more digital given chip shortages is becoming more widespread.

To view the most recent Corporate Bond Market Summaries: Investment Grade or High Yield

If you’d like further color or analysis, please reach out to efeltkamp@solveadvisors.com

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