Advantage Data High Yield Bond Market Summary

European Bond Research - October 9, 2019

Posted by Pierre Robert on Oct 9, 2019 2:37:00 PM
CHINA/US TRADE DEAL HOPED. STOCKS UP BUT TENTATIVELY. Multiple issues between China and the US have popped up: US blacklisted more China companies, NBA/China controversy over Hong Kong, China's continued reluctance to give in on trade "sovereignty issues". FTSE 100 +0.33%, German DAX  +1.04%, CAC 40 +0.78%, STOXX Europe 600 +1.21%.  The 10-year Gilt was UP 4.6 bps.

unnamed - 2019-09-10T120954.400

SOVEREIGN BOND YIELDS FOR THE UK AND US ARE UP. China/US trade talks next week seems to have multiple stumbling blocks building up in advance.  (Advantage Data Inc.).  Extensive corporate-bond index data showed a net daily grade 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,  Mylan Inc. (USD) 3.95% 6/15/2026 made some analysts 'Conviction buy' lists. (See the chart for Mylan Inc. bonds below). Pierre Robert
 

 

Credit-Default Swap Market


LATEST NEWS: Top moves, sovereign tighteners (5Y): Germany 10.295 bp and Belgium 18.48 bp. Sovereign wideners (5Y): China 49.615 bp and Ireland 32.69  bp.

unnamed - 2019-10-09T143419.695

New Issuance


New Issues New Issues [Continued]

1. Samhallsbyggnadsbolaget (SEK) FLT% 2/1/2023 (10/08/2019): 1000MM Senior Unsecured Notes.

2. Arlo XII Limited (EUR) 0.28% 3/23/2034 (10/09/2019): 50MM Secured Notes.

 

ADI Indexes


unnamed - 2019-09-10T120949.747

DATA CHECK:
 
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 10/08/2019, 134.67 NAV as of 10/08/2019, 102.88
Daily NAV Change (%) -0.11% Daily NAV Change (%) +0.42%

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 -0.387%, as of 10/08/2019

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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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