European Bond Research - August 6, 2019

Posted by Pierre Robert on Aug 6, 2019 12:35:33 PM
MARKETS HAVE STABILIZED AFTER CHINA STATED the Yuan will not go below 7 Yuan per dollar. Sovereign curves world-wide stabilized. No-Brexit deal is currently swirling around and maybe the deal that needs to be hammered out before an October exit. FTSE 100 -.72%, German DAX -.78%, CAC 40-.13%, STOXX Europe 600 -.47%. The 10-year Gilt rose 1 basis points.
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RENAULT BONDS continue to rally on the prospect that a deal is possible with Fiat. Renault is currently negotiating with Nissan to see how a deal would be created. 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, Renault SA (EUR) 3.125% 3/5/2021 made some analysts' 'Conviction Buy' lists. (See the chart for   (Renault SA (EUR) 3.125% 3/5/2021 below). Pierre Robert


Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Germany  11 bp and France 21 bp. Sovereign wideners (5Y): South Korea  33 bp and China 55 bp.

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New Issuance

New Issues New Issues [Continued]

1. Nordea Bank AB (NOK) FLT% 8/12/2022 (08/05/2019): 1400MM Senior Unsecured Notes.

2. RLB Oberoesterreich (EUR) FLT% 9/30/2026 (08/06/2019): 50MM Senior Unsecured Notes, Price at Issuance 100.


ADI Indexes

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iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 08/06/2019, 134.75 NAV as of 08/06/2019, 104.62
Daily NAV Change (%) +0.07% Daily NAV Change (%) +0.21%

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 -0.369%, as of 08/05/2019

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

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