INFLATION IN THE EUROZONE WAS REVISED HIGHER to 1.3 percent for the month of June still falling short of the ECB’s desirable range of 2 percent. A-component Amazon of the FAANG group will be investigated by EU antitrust regulators examining if it misused merchant data breaching EU antitrust laws. European Competition Commissioner Margrethe Vestager commented, “E-commerce has boosted retail competition and brought more choice and better prices. We need to ensure that large online platforms don’t eliminate these benefits through anti-competitive behavior.” 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, Electricite de France (USD) 3.625% 10/13/2025 Reg S made some analysts' 'Conviction Buy' lists. (See the chart for Electricite de France below). Corey Mahoney (cmahoney@
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Westfield Stratford City Finance PLC (GBP) 1.642% 8/4/2026 (07/16/2019): 750MM Secured Notes.
2. LB Baden-Wuerttemberg (EUR) 0.375% 7/29/2026 (07/17/2019):500MM Senior Non Preferred Notes.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 07/17/2019, 133.95||NAV as of 07/17/2019, 105.10|
|Daily NAV Change (%) +0.10%||Daily NAV Change (%) -0.2%|
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 -0.35%, as of 07/16/2019
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