UK ECONOMY IS CLOSE TO STAGNATION in February as companies prepare for a disorderly Brexit shedding payrolls at the fastest rate in nearly a decade.  The Bank of England announced Britain’s financial institutions are equipped for “significant” volatility, however, to fend off a meltdown the central bank will provide euros to banks.  BMW is the latest multinational company to announce the possibility of shifting production out of the UK, mulling the risks of a disorderly Brexit.  A board member of BMW stated “This would be really a huge burden for the Mini brand” and when asked about moving production, “We at least have to consider it”. ADI (Advantage Data Inc.) 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,  Johnson Controls International PLC (USD) 5.125% 9/14/20456 made some analysts' 'Conviction Buy' lists. (See the chart for Johnson Controls bonds below.) Corey Mahoney  (cmahoney@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	2.203	2.164	-52.4
Belgium	10	0.684	0.702	-204.3
France	10	0.558	0.582	-216.9
Germany	10	0.163	0.186	-256.4
Italy	10	2.732	2.733		0.5
Japan	10	0.001	-0.008	-272.6
Netherlands	10	0.261	0.289	-246.6
Portugal	10	1.464	1.488	-126.2
Spain	10	1.174	1.203	-155.3
Sweden	10	0.403	0.414	-232.4
U.K.	10	1.277	1.298	-145.0
U.S.	10	2.727	2.754	...

New Issues	New Issues [Continued]
1. GL Events SA (EUR) 3% 2/26/2026 (03/04/2019): 64MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3%. 2. Raiffeisen Bank Intl. AG (USD) 2.75% 3/29/2021 (03/04/2019):50MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.75%.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 03/05/2019, 129.6	NAV as of 03/05/2019, 104.45
Daily NAV Change (%) -0.12%	Daily NAV Change (%) -0.05%

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 7.9% (seasonally adjusted, November 2018)
• Eurostat's quarterly GDP: 0.2% (2018 Q3 Final)
• 6-month Euribor: current value -0.230%, as of 03/04/2019

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