Advantage Data High Yield Bond Market Summary

European Bond Research - October 28, 2019

Posted by Pierre Robert on Oct 29, 2019 11:42:03 AM
BREXIT EXTENSION GRANTED TIL JANUARY 31, 2020. BREXIT FATIGUE IS SETTING IN. December deadline election is being pushed by Boris Johnson. FTSE 100 -0.76%, German DAX +0.04%, CAC 40 +0.34%, STOXX Europe 600 +0.34%.  The 10-year Gilt was up 3.5 bps.

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SOVEREIGN BONDS WERE MIXED TO HIGHER AND STOCK MARKETS ARE HIGHER.  (Advantage Data Inc.).  Extensive corporate-bond index data showed a net daily grade increment for high-grade versus high-yield constituents. High-yield bonds edged out high-grade debt as of 3 PM, London time.  Among European high-yield bonds showing a concurrence of top price gains at appreciable volumes traded,  ArcelorMittal SA (USD) 8% 10/15/2039 made some analysts 'Conviction buy' lists. (See the chart for ArcelorMittal SA bonds below). Pierre Robert
 

 

Credit-Default Swap Market


LATEST NEWS: Top moves, sovereign tighteners (5Y): Germany 9.165 bp and Greece 169.64 bp. Sovereign wideners (5Y): Belgium 17.945 bp and Italy 111.10 bp.

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New Issuance


New Issues New Issues [Continued]

1. Mota-Engil SGPS SA (EUR) 4.375% 10/30/2024 (10/28/2019): 75MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.38%.

 

ADI Indexes


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DATA CHECK:
 
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 10/28/2019, 134.28 NAV as of 10/28/2019, 103.35
Daily NAV Change (%) +0.02% Daily NAV Change (%) -0.03%

OVERALL EUROPEAN CREDIT MARKET:
The euro-zone economy shows signs of negative momentum, weakening credit rating quality, and uncertainty regarding the outcome of Brexit. Closely watched indicators and rates:
  • Eurostat's unemployment ratecurrently 7.5% (seasonally adjusted, May 2019)
  • Eurostat's quarterly GDP: 0.4% (2019 Q1)
  • 6-month Euribor: current value -0.35%, as of 10/25/2019

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Topics: High Yield, Investment Grade, Loans, Analytics, bonds, junk bonds, bond market, market analytics, New Issues, Finance, Fixed Income, News, Syndicated Bonds, syndicated, research, market update


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