EUROPEAN EQUITIES SETTLED MIXED with light trading volumes as European markets are observing Labour Day. The European Central Bank fears Deutsche Bank is at risk of failing U.S. stress tests. The bank has struggled to appease investors after unproductive merger talks with Commerzbank. The 10-year Gilt lost 2.3 basis points.  FTSE 100 -0.35%, German DAX +0.13%, CAC 40 +0.10%, STOXX Europe 600 -0.05%.

U.K. MANUFACTURING DECLINED to a two-month low of 53.1 in April compared to 55.1 in March; analysts expected PMI to come in at 53.  “The upturn in the UK manufacturing sector eased at the start of the second quarter…There were also reports of overseas clients acting now to re-route their supply chains away from the UK in advance of Brexit.”  The collateral damage associated with Brexit is becoming evident and as uncertainties persist businesses will continue to mitigate risk.  U.K. house prices ticked 0.4 percent higher in April an increase from the 0.2 percent rise in March.  It appears buyers are braving uncertainties related to Brexit aided by the lowest interest rates in more than 40 years. 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,   AerCap Ireland Capital LTD (USD) 3.65% 7/21/2027 made some analysts' 'Conviction Buy' lists. (See the chart for AerCap Ireland Capital LTDbonds below). Corey Mahoney (cmahoney@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	1.799	1.800	-70.5
Belgium	10	0.446	0.457	-205.8
France	10	0.368	0.364	-213.6
Germany	10	0.016	0.007	-248.8
Italy	10	2.566	2.582		6.2
Japan	10	-0.029	-0.029	-253.3
Netherlands	10	0.190	0.181	-231.4
Portugal	10	1.113	1.124	-139.1
Spain	10	1.005	1.010	-149.9
Sweden	10	0.162	0.147	-234.2
U.K.	10	1.188	1.159	-131.6
U.S.	10	2.504	2.527	...

LATEST NEWS: Top moves, sovereign tighteners (5Y): France 28 bp and UK 28 bp. Sovereign wideners (5Y): Korea 32 bp and China 41 bp.

New Issues	New Issues [Continued]
1. Bank of America Corp. (EUR) 0.808% 5/9/2026 (04/30/2019):1250MM Senior Unsecured Notes. 2. Guardian Life Global Funding (USD) 2.9% 5/6/2024 Reg S (04/30/2019): 300MM Secured Notes, Price at Issuance 99.894, Yielding 2.92%.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 05/01/2019, 132.11	NAV as of 05/01/2019, 104.25
Daily NAV Change (%) +0.08%	Daily NAV Change (%) -0.08%

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 7.7% (seasonally adjusted, March 2019)
• Eurostat's quarterly GDP: 0.4% (2019 Q1 Preliminary)
• 6-month Euribor: current value -0.231%, as of 04/30/2019

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.