European Bond Research - August 13, 2019

Posted by Pierre Robert on Aug 13, 2019 11:40:07 AM
SOVEREIGN CURVES IN EUROPE STABILIZED so far today. US delays China tariffs. Stock markets surge. FTSE 100 +0.19%, German DAX +.55%, CAC 40 +1.00%, STOXX Europe 600 +.50%. The 10-year Gilt gained 3.1 basis points. 

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COMMERZBANK BONDS continue to fall amid turmoil in the German economy, failed merger, lack luster results and a German banking system under continued pressure to break out of its slump.  ADI (Advantage Data Inc.).  Extensive corporate-bond index data showed a net daily yield 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,  Commerzbank AG (EUR) 2% 9/10/2025 made some analysts' 'Conviction Sell' lists. (See the chart for Commerzbank AG bonds below). Pierre Robert
 

 

Credit-Default Swap Market


LATEST NEWS: Top moves, sovereign tighteners (5Y): Korea 33.75 bp and Italy 217.25 bp. Sovereign wideners (5Y):  Denmark 11.45 bp and France 23.3 bp.

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New Issuance


New Issues New Issues [Continued]

1. Barclays Bank PLC (USD) 2.2% 8/14/2019 (08/12/2019): 1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.2%.

2. Landmark Capital SA (USD) 2.33% 12/3/2019 (08/13/2019):100MM Secured Notes, Price at Issuance 100, Yielding 2.33%.

 

ADI Indexes


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DATA CHECK:
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 08/13/2019, 135.51 NAV as of 08/13/2019, 105.00
Daily NAV Change (%) +.17% Daily NAV Change (%) +.35%

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 ratecurrently 7.5% (seasonally adjusted, May 2019)
  • Eurostat's quarterly GDP: 0.4% (2019 Q1)
  • 6-month Euribor: current value -0.400%, as of 08/12/2019

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Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.

Topics: Analytics, bonds, junk bonds, bond market, corporate bonds, market analytics, New Issues, News, research, EU, market update, European


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