EURO ZONE BUSINESS GROWTH DETERIORATED IN JULY falling to 51.5 closing in on the 50 mark, a pivotal indication of a contracting economy. “The service sector continued to sustain the expansion of the overall eurozone economy at the start of the third quarter, but there are signs that the scale of the manufacturing downturn is starting to overwhelm.” Investor confidence in August slips to five-year lows in the euro area falling to -13.7. 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, AstraZeneca PLC (USD) 6.45% 9/15/2037 made some analysts' 'Conviction Buy' lists. (See the chart for AstraZeneca PLC bonds below). Corey Mahoney
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Nordea Bank AB (NOK) FLT% 8/12/2022 (08/05/2019): 1400MM Senior Unsecured Notes.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 08/05/2019, 134.65||NAV as of 08/05/2019, 104.5|
|Daily NAV Change (%) -0.11%||Daily NAV Change (%) -0.37%|
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 7.5% (seasonally adjusted, May 2019)
- Eurostat's quarterly GDP: 0.4% (2019 Q1)
- 6-month Euribor: current value -0.367%, as of 08/02/2019
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