I've seen both positive and negative spins on today's same store sales figures. "Not as bad as expected" on the optimistic side versus the pessimistic "sales may be up/OK but at the expense of margins". Spreads within the retail space are actually flat to slight better.
JPMorgan has a proprietary global all industry PMI that showed a slight uptick in January....hope springs eternal.
Swap spreads are mixed and the Vix is higher.
Investment grade supply remains robust.....with $6.25B yesterday. Altria's recent deal has a 10.2% coupon....and it's still investment grade.
Textron has drawn down the bulk of it's bank lines....occasionally this is perceived as precautionary or prudent....but not in this case. Spreads are getting crushed and only high yield investors care about the name anymore.
Please pay attention to the commercial mortgage backed securities market. The index (CMBX) has been weak of late as many investors don't believe the government will step in and save that part of the real estate market. Saving mom 'n pop's home plays well on TV....not so much for a mall.
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