FRENCH UNEMPLOYMENT DROPPED in the first quarter to the lowest level in a decade receding to 8.7 percent. Sound improvement has pushed employment to its highest level since 1980; President Emmanuel Macron set a goal of 7 percent unemployment by 2020. EU fined five banks 107 billion euros for manipulating foreign currency markets, among the banks Barclays, Citigroup and JP Morgan. “These cartel decisions send a clear message that the Commission will not tolerate collusive behavior in any sector of the financial markets”. ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-
made some analysts' 'Conviction Buy' lists. (See the chart for Telecom Italia Capital SA bonds below). Corey Mahoney (cmahoney@
|Country||Maturity (Y)||Yield (%)||Previous (%)||Spread (bp)|
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Standard Chartered PLC (USD) 0% 6/4/2049 (05/14/2019): 100MM Senior Unsecured Notes, Price at Issuance 100, Yielding 0%.
2. Fidelity National Info Services Inc (EUR) 0.125% 5/21/2021 (05/14/2019): 500MM Senior Unsecured Notes, Price at Issuance 99.896, Yielding .177%.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 05/16/2019, 131.91||NAV as of 05/16/2019, 103.38|
|Daily NAV Change (%) +0.12%||Daily NAV Change (%) +0.31%|
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 -0.232%, as of 05/15/2019
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