Advantage Data High Yield Bond Market Summary

European Bond Research - September 13, 2019

Posted by Pierre Robert on Sep 13, 2019 12:24:38 PM
THE EUROPEAN CENTRAL BANK is pressuring Germany to start stimulating its economy. Apart from cutting rates, the ECB believes stimulus is key to loosening credit to keep the economy out of a potential deflationary cycle and continued negative yield environment. FTSE 100 +.11%, German DAX +0.47%, CAC 40 +0.32%, STOXX Europe 600 +0.30%. The 10-year Gilt rose 5.4 basis points.

 

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DEUTSCHE BANK AG HAD several negatives stories surface over the last several days. They were noted to have been the bank to several Jeffery Epstein questionable charities and they settled with US regulators over bond pricing rigging in Fannie and Freddie bonds.  The (Advantage Data Inc.).  Extensive corporate-bond index data showed a net daily yield 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,  Deutsche Bank AG (USD) 4% 3/14/2024  made some analysts' 'Conviction buy' lists. (See the chart for Deutsche Bank AG  bonds below). Pierre Robert
 

 

Credit-Default Swap Market


LATEST NEWS: Top moves, sovereign tighteners (5Y): Greece 225 bp and Italy 126.6 bp. Sovereign wideners (5Y): Denmark 10.3 bp and Finland 11.25 bp.

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New Issuance


New Issues New Issues [Continued]

1. Bank fuer Tirol und Vorarlberg AG (EUR) 0.275% 9/23/2024 (09/12/2019): 50MM Senior Preferred Security, Price at Issuance 100, Yielding .28%.

2. BNP Paribas (JPY) 1.058% 9/25/2034 (09/13/2019): 8500MM Subordinated Notes, Price at Issuance 100, Yielding 1.06%.

 

ADI Indexes


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DATA CHECK:
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 09/13/2019, 134.67 NAV as of 09/13/2019, 104.2
Daily NAV Change (%) -0.14% Daily NAV Change (%) -0.04%

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 -0.408%, as of 09/12/2019

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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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