FRENCH SHIPPING GIANT CMA CGM announced they will drop the British flag from its fleet as Brexit risks persist. “Due to the need for simplification of group structure and uncertainty of Brexit consequences, we concluded to exit UK.” The United Kingdom faced scrutiny after occurring a 50 million pounds loss after canceling ferry contracts in preparation of a no deal Brexit that never happned. Euro zone producer prices slipped in May by 0.1 percent pulled lower by a significant drop in energy prices meanwhile prices for durable goods increased 1.4 percent. ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-yield versus high-grade constituents. High-
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Bank Julius Baer (Gg) (AUD) 1.01% 10/1/2019 (07/01/2019): 96MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1.01%.
2. BKW FMB Energie AG (CHF) 0.25% 7/29/2027 (07/01/2019):200MM Senior Unsecured Notes, Price at Issuance 100.337, Yielding .21%.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 07/02/2019, 134.36||NAV as of 07/02/2019, 105.42|
|Daily NAV Change (%) +0.07%||Daily NAV Change (%) +0.09%|
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 7.7% (seasonally adjusted, March 2019)
- Eurostat's quarterly GDP: 0.4% (2019 Q1)
- 6-month Euribor: current value -0.313%, as of 07/01/2019
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