GERMAN MANUFACTURING TICKS HIGHER IN MARCH due to an increase in demand from Eurozone countries however, fell short of expectations. Weak domestic demand nearly offset the increase in demand abroad, and subtracting large orders it would have further deteriorated. "The slight order increase in March is not least due to bulk orders," stated the German economic minister. Car sales across Western Europe receded in April; in Britain car sales plummeted 4.1 percent as “consumers are currently reluctant to make big-ticket purchase” 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-
|Country||Maturity (Y)||Yield (%)||Previous (%)||Spread (bp)|
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Liechtensteinische Landesbank Ag Vaduz (CHF) 0.125% 5/28/2026 (05/07/2019): 150MM Senior Unsecured Notes, Price at Issuance 100.384, Yielding .07%.
2. Car Inc. (USD) 8.875% 5/10/2022 (05/07/2019): 172MM Senior Unsecured Notes.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 05/07/2019, 132.09||NAV as of 05/07/2019, 103.55|
|Daily NAV Change (%) +0.01%||Daily NAV Change (%) -0.4%|
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 -0.230%, as of 05/06/2019
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