European Bond Research - August 7, 2019

Posted by Pierre Robert on Aug 7, 2019 1:17:23 PM
SOVEREIGN BONDS yield in Europe were mixed to down. Downward pressure by US treasuries has weighted on sovereign’s  bonds. UK sovereign bonds were also lower. FTSE 100 +0.38%, German DAX +0.71%, CAC 40 +0.61%, STOXX Europe 600 +0.24%.vThe 10-year Gilt lost 2.9 basis points.

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DANSKE BANK has stated that they will be exiting Russia amist a $230 billion dollar money laundering scandal.  Danske bonds have been trading heavily over this past week. 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. Pierre Robert


Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Portugal  43 bp and France 22 bp. Sovereign wideners (5Y): South Korea  33 bp and China 55 bp.

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New Issuance

New Issues New Issues [Continued]

1. SNCF Reseau (EUR) 0.875% 1/22/2029 (08/06/2019): 100MM Senior Unsecured Notes.

2. SNCF Reseau (EUR) 1.125% 5/25/2030 (08/06/2019): 150MM Senior Unsecured Notes.


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 08/06/2019

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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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