THE EUROPEAN COMMISSION SLASHED ITS GROWTH estimate for the bloc to 1.2 percent this year down from 1.9 percent in 2018. Increased trade uncertainties have spiked fear and “could also trigger a shift in global risk sentiment at times when valuations appear stretched across many asset classes.” British recruiting firm PageGroup tumbled 15 percent after alerting investors profits will be lower than expected amid a hiring slowdown given Brexit uncertainties. ADI (Advantage Data Inc.). Extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-grade bonds edged out high-yield debt as of 3 PM, London time. Among European high-grade bonds showing a concurrence of top price gains at appreciable volumes traded, HSBC Holdings PLC (USD) 5.25% 3/14/2044 made some analysts' 'Conviction Buy' lists. (See the chart for HSBC Holdings PLC below). Corey Mahoney (cmahoney@
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Mediobanca Di Credito Finanz SpA (EUR) 1.125% 7/15/2025 Reg S (07/09/2019): 500MM Senior Preferred Security, Price at Issuance 99.631, Yielding 1.189%.
2. Rothesay Life Ltd. (GBP) 3.375% 7/12/2026 Reg S (07/09/2019):300MM Subordinated Notes.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 07/10/2019, 134.17||NAV as of 07/10/2019, 105.43|
|Daily NAV Change (-0.14%)||Daily NAV Change (%) +0.06%|
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 7.5% (seasonally adjusted, May2019)
- Eurostat's quarterly GDP: 0.4% (2019 Q1)
- 6-month Euribor: current value -0.346%, as of 07/09/2019
Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com
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.