GERMAN AUTOMAKER DAIMLER slashed its 2019 profit forecast for the fourth time this year, recently warning the luxury carmaker will report a loss of 2.8 billion euros for the second quarter. In a statement Daimler, the maker of Mercedes said “new information leading to a revised risk assessment” of the global airbag recall and regulatory compliances surrounding the diesel vehicles “lead to an increase in expected expenses by around 1.6 billion euros”. 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, ArcelorMittal SA (USD) 5.25% 8/5/2020 made some analysts' 'Conviction Buy' lists. (See the chart for ArcelorMittal SA below). Corey Mahoney (cmahoney@
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Accent Capital PLC (GBP) 2.625% 7/18/2049 (07/11/2019): 350MM Secured Notes, Price at Issuance 97.96, Yielding 2.725%.
2. Lunar Luxembourg SA (EUR) 0% 7/18/2024 (07/12/2019): 152MM Secured Notes, Price at Issuance 100, Yielding 0%.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 07/12/2019, 133.43||NAV as of 07/12/2019, 105.31|
|Daily NAV Change (-0.03%)||Daily NAV Change (%) -0.10%|
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, May2019)
- Eurostat's quarterly GDP: 0.4% (2019 Q1)
- 6-month Euribor: current value -0.342%, as of 07/11/2019
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