European Bond Research 11/16/2017

Posted by Michael F. Brown on Nov 17, 2017 11:57:16 AM
JUNK BONDS FLUCTUATED HIGHER in overall price gains linked to trades, outpacing investment-grade debt on the European trading front. A strong showing by Europe's carmakers was a major element in today's market dynamic, as Volkswagen AG shares jumped 3.1%, Fiat Chrysler NV was up 1.6%, and Renault SA added 1.3%, as of 3:30 PM, London time. Today's rebound in risk assets, on the heels of the worst run of sell-offs since October of '16, was fed also by upbeat data from heavyweight conglomerate Bouygues SA, 3i Group PLC, and British Land Co. PLC. Nymex oil prices stabilized around $55.30, supporting a rebound in the oil-and-energy sector as the view grew that U.S. shale producers will be more disciplined, going forward. 


Risk-off trades eased notably in Europe's bourses and bond-trading centers, as the pan-European Stoxx 600 equities index posted a 0.80% gain. Strength in earlier Asian markets, notable upbeat  data in Europe's carmaker sector (see notes above), and a leveling off of crude-oil's slide earlier in the week, all factored into a rebound from yesterday's acute defensive tone. Commodities fared better overall as well, amid news that China's central bank has injected cash into its economic structure, offsetting concerns about a slowdown in global demand for minerals and other building materials. That news helped European mining firms take back a modest layer of recent losses, as BHP Billiton Ltd. and Glencore PLCshares fluctuated to the shallow green. Sector cues for corporate-bond traders were also given by gains in BNP Paribas SA, Genmab A/S and Wirecard AG shares, while Sodexo SA, GKN PLC, and Electrolux AB pulled back. ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-yield versus high-grade constituents. High-yield bonds edged out high-grade debtin net prices, as of 4 PM London time. Among European high-yield bonds showing a concurrence of top price gains at appreciable volumes,  Intelsat Jackson Holdings SA 7.25% 10/15/2020  made some analysts' 'Conviction Buy' lists. (See chart for ArcelorMittal bonds, above.) 

Topics: High Yield, Investment Grade, bonds, junk bonds, bond market, corporate bonds

From the leader in fixed income pricing and data comes market analytics and information you need now.

AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:

  • 529,400+ U.S. and international corporate bonds
  • Over 6,200+ CDS reference entities
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 14 asset classes from debt to CDS to loans to mid-market
  • Used by top buy and sell-side firms worldwide

Why aren't you using AdvantageData?