Advantage Data High Yield Bond Market Summary

European Bond Research - April 2, 2019

Posted by Niral Mehta on Apr 2, 2019 12:35:06 PM
BANK OF ENGLAND TO EXTEND BREXIT LIQUIDITY AUCTIONS UNTIL END OF JUNE, providing smooth market conditions given Britain leaves the European Union.  “The bank will continue to monitor growth and market liquidity on a daily basis, and stands ready to take additional action if necessary.”  The EU has placed a series of contingency measures to deal with a no-deal Brexit; including a temporaryrecognition of Britain-based clearing houses which processes multi-trillion euro derivatives transactions.  The euro fell below $1.12 as U.S. economic data outperforms expectations.  The pound fell half a percent after lawmakers rejected four Brexit proposals. The UK 10-year Gilt declined four basis points. FTSE 100, +1.08%, STOXX Europe 600 +1.68%, CAC 40 +0.41%, German DAX +0.77%.

FORD IS SPENDING TENS OF MILLIONS in EUROS PREPARING FOR A POSSIBLE BREXIT EXIT from the European Union.  Ford has announced 5,000 job cuts in Germany, its second-biggest European market.  Ford stated, “We’ve been clear with the government in the UK and also in Brussels, we have to maintain frictionless trade at the borders and tariff-free trade to maintain stability.”  Among European investment grade-yield bonds showing a concurrence of top price gains at appreciable volumes traded, Rio HSBC Holdings PLC (USD) 3.4% 3/8/2021 made some analysts' 'Conviction Buy' lists. (See the chart for  HSBC Holdings PLC bonds below). Niral Mehta (

Sovereign-Debt Snapshot

Country Maturity (Y) Yield (%) Previous (%) Spread (bp)
Australia 10 1.813 1.790 -68.7  
Belgium  10 0.460 0.414 -203.9  
France  10 0.378 0.324 -212.2  
Germany  10 -0.025 -0.069 -252.4  
Italy  10 2.513 2.481   1.4
Japan  10 -0.078 -0.091 -257.7  
Netherlands  10 0.075 0.031 -242.4  
Portugal  10 1.275 1.248 -122.4  
Spain  10 1.143 1.098 -135.6  
Sweden  10 0.197 0.173 -230.2  
U.K.  10 1.048 0.997 -145.1  
U.S.  10 2.499 2.406 ...

Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Italy 206 bp and China 43 bp. Sovereign wideners (5Y):  Ireland 37 bp and Belgium 25 bp.

New Issuance

New Issues New Issues [Continued]

1. NRW Bank (EUR) 0.175% 4/15/2026 (04/01/2019): 100MM Senior Unsecured Notes, Price at Issuance 100, Yielding .18%.

2. Volvo Treasury AB (SEK) FLT% 4/6/2023 (04/01/2019): 1000MM Senior Unsecured Notes.


ADI Indexes

iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 04/02/2019, 131.28 NAV as of 04/02/2019, 103.77
Daily NAV Change (%) +0.02% Daily NAV Change (%) +0.29%

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, January 2019)
  • Eurostat's quarterly GDP: 0.2% (2018 Q3 Final)
  • 6-month Euribor: current value -0.228%, as of 04/01/2019

Copyright 2019 Advantage Data Inc. All Rights Reserved.

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.

Topics: Analytics, bonds, bond market, market analytics, News, research, EU, market update, European

Are you using AdvantageData?

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

  • 500,000+ U.S. and international corporate bonds
  • Over 6,200+ CDS reference entities
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 16 products and services from debt to CDS to loans to mid-market
  • Used by top buy and sell-side firms worldwide


Subscribe to Email Updates

Recent Posts