European Bond Research - July 19, 2019

Posted by Anna Pickett on Jul 19, 2019 11:53:37 AM
Find me on:
NO-DEAL BREXIT COULD RAISE UK BORROWING to £60BN according to The Office for Budget Responsibility (OBR), which also assumed that a no-deal Brexit would cause a UK recession. According to the Office for National Statistics, public sector net borrowing totalled £7.2BN, which is up from £3.3BN in June 2018. FTSE 100 +0.16%, German DAX +0.22%, CAC 40 -0.09%, STOXX Europe 600 +0.08%.  

unnamed - 2019-07-18T115652.064


EUROPEAN CENTRAL BANK IS EXPECTED TO SIGNAL toward an easier monetary policy as the gloabl march toward lower interest rates reaches Europe, caused in part by the slowed global growth and increased protectionism. Deutsche Bank's planned sale of its prime brokerage unit to BNP Paribas is still in a preliminary stage as both parties are keeping an eye on hedge fund withdrawals. Since Deutsche Bank's restructuring declaration, hedge fund clients have pulled about $1B in assets per day since the July 7th announcement.  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,  Aon PLC (USD) 4.45% 5/24/2043 made some analysts' 'Conviction Buy' lists. (See the chart for Aon PLC below). Anna Pickett (apickett@advantagedata.com).
 

 

Credit-Default Swap Market


LATEST NEWS: Top moves, sovereign tighteners (5Y): UK 15 bp and China 43bp. Sovereign wideners (5Y): Ireland 28 bp and Sweden 12 bp.

unnamed - 2019-07-19T115141.154

New Issuance


New Issues New Issues [Continued]

1. Tesco Personal Finance (GBP) 3.5% 7/25/2025 (07/19/2019):250MM Senior Unsecured Notes.

2. JPMorgan Chase & Co. (EUR) 1.001% 7/25/2031 (07/19/2019):1500MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1%.

3. Efacec Capital SGPS SA (EUR) 4.5% 7/23/2024 (07/19/2019):58MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.5%.

 

ADI Indexes


unnamed - 2019-07-18T115657.384

DATA CHECK:
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 07/19/2019, 134.15 NAV as of 07/19/2019, 105.01
Daily NAV Change (%) +0.15% Daily NAV Change (%) +0.18%

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 ratecurrently 7.5% (seasonally adjusted, May 2019)
  • Eurostat's quarterly GDP: 0.4% (2019 Q1)
  • 6-month Euribor: current value -0.353%, as of 07/18/2019

Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.

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


Are you using AdvantageData?

AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:

  • 500,000+ U.S. and international corporate bonds
  • Over 6,200+ CDS reference entities
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 16 products and services from debt to CDS to loans to mid-market
  • Used by top buy and sell-side firms worldwide

Subscribe to Email Updates

Recent Posts