GERMAN INDUSTRIAL CONGLOMERATE SIEMENS reported positive earning exceeding investor expectations surging more than 4 percent. Siemens revealed plans to spin off its struggling gas and power unit to boost profit within the conglomerate. “We know that some competitors and rival CEOs had to experience what happens when you run out of options…We wanted to remain proactive and anticipate the transformation,” alluding to GE stated Joe Kaeser Siemens CEO. 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, Price at Issuance 100, Yielding 8.875%.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 05/08/2019, 131.92||NAV as of 05/08/2019, 103.32|
|Daily NAV Change (%) -0.13%||Daily NAV Change (%) -0.22%|
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 -0.229%, as of 05/07/2019
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