MAJOR AIRLINER VIRGIN ATLANTIC POSTS annual loss for a second year due to a shaky economy, higher costs of fuel generated by a weaker pound. Total revenue declined to 2.78 billion pounds and passenger numbers grew under 5 percent for Q4 of 2018. The pound declined 5.6 percent against the U.S. dollar in 2018, as Britain “contended” with political and economic uncertainty. Among European investment grade bonds showing a concurrence of top price gains at appreciable volumes traded, Barclays PLC (USD) 10.179% 6/12/2021 made some analysts' 'Conviction Buy' lists. (See the chart for Barclays PLC bonds below). Niral Mehta (email@example.com
|Country||Maturity (Y)||Yield (%)||Previous (%)||Spread (bp)|
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Compartiment Cr Gca-Cpe-006 (EUR) 0.2% 4/12/2021 (04/09/2019): 2000MM Unsecured Notes, Price at Issuance 100, Yielding .2%.
2. UniCredit Bank AG (EUR) 0.265% 4/14/2026 (04/09/2019): 50MM Secured Notes, Price at Issuance 100, Yielding .27%.
3. Glencore Finance Europe (EUR) 1.5% 10/15/2026 (04/09/2019):500MM Senior Unsecured Notes.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 04/10/2019, 131.49||NAV as of 04/10/2019, 104.10|
|Daily NAV Change (%) +0.14%||Daily NAV Change (%) +0.17%|
OVERALL EUROPEAN CREDIT MARKET:
The euro-zone economy shows signs of positive momentum, although conditions are expected to deteriorate hindered by the termination of quantitative easing, weakening credit rating quality, and uncertainty regarding the outcome of Brexit. Closely watched indicators and rates:
- Eurostat's unemployment rate: currently 7.8% (seasonally adjusted, February 2019)
- Eurostat's quarterly GDP: 0.2% (2018 Q3 Final)
- 6-month Euribor: current value -0.231%, as of 04/09/2019
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