European Bond Research - July 18, 2019

Posted by Anna Pickett on Jul 18, 2019 12:00:18 PM
Find me on:
GERMAN SOFTWARE MAKER SAP PLUMMETED MORE THAN 6% after reporting a 21% decline in second-quarter operating profit. The European tech sector was down 2% and can be attributed to the residual trade tensions between the US and China and disappointing earnings from Netflix on Wednesday. FTSE 100 -0.44%, German DAX -0.75%, CAC 40 -0.24%, STOXX Europe 600 -0.14%.  

unnamed - 2019-07-18T115652.064


VODAFONE AND LOXAM CLOSE ON RECENT ACQUISITIONS. Loxam issued three new bonds in order to finance it's acquisition of Ramirent, which allows the company to greatly reduce its dependence on its domestic market and gain market share in the Nordic area. Vodafone's purchase of Liberty Globalcoincides with its company strategy to expand beyond just a pure mobile provider. The strategy was launched by forner CEO Vittorio Colao and designed to increase customer spending and deepen user loyalty. 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, Shell Intl. Finance BV (USD) 2.25% 11/10/2020 made some analysts' 'Conviction Buy' lists. (See the chart for Shell Intl. Finance BV below). Anna Pickett (apickett@advantagedata.com).
 

 

Credit-Default Swap Market


LATEST NEWS: Top moves, sovereign tighteners (5Y): Denmark 11 bp and Italy 155 bp. Sovereign wideners (5Y): France 22 bp and China 43 bp.

unnamed - 2019-07-18T115654.905

New Issuance


New Issues New Issues [Continued]

1. Italgas S.P.A. (EUR) 0.875% 4/24/2030 (07/17/2019): 600MM Senior Unsecured Notes, Price at Issuance 98.924.

2. Loxam SAS (EUR) 3.75% 7/15/2026 (07/18/2019): 450MM Secured Notes, Price at Issuance 100, Yielding 3.75%.

 

ADI Indexes


unnamed - 2019-07-18T115657.384

DATA CHECK:
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 07/18/2019, 133.99 NAV as of 07/18/2019, 104.95
Daily NAV Change (%) +0.01% Daily NAV Change (%) -0.14%

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 ratecurrently 7.5% (seasonally adjusted, May 2019)
  • Eurostat's quarterly GDP: 0.4% (2019 Q1)
  • 6-month Euribor: current value -0.357%, as of 07/17/2019

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.

Topics: Analytics, bonds, junk bonds, bond market, corporate bonds, market analytics, New Issues, 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