European Bond Research - July 31, 2019

Posted by Corey Mahoney on Aug 1, 2019 3:46:48 PM
EURO ZONE GDP GREW BY A DISMAL 0.2 PERCENT during the second quarter of 2019 down from 0.4 percent during the first three months of 2019.  Slowing GDP across the euro zone strengthens a case for the European Central Bank to initiate additional monetary easing. “We expect the ECB to respond to this broad-based economic weakness – which we think is likely to continue – with a round of extra policy easing, including restarting QE and cutting rates.” FTSE 100 -0.81%, German DAX +0.39%, CAC 40+0.27%, STOXX Europe 600 +0.18%.  The 10-year Gilt lost 1.1 basis points. 

unnamed - 2019-08-01T152128.640

ASTON MARTIN LUXURY AUTOMAKER BASED IN THE UK nose-dived 17 percent after reporting a 78.8 million pound loss during the first six months of 2019. Aston Martin bonds also traded notably lowersome shedding more than 5 points over the past week. “We are disappointed that our projections for wholesales have fallen short or our original targets, impacted by weakness in two of our key markets as well as continued macro-economic uncertainty.” Aston Martin Capital Ltd. (USD) 6.5% 4/15/2022 Reg S 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,   LyondellBasell Industries (USD) 4.625% 2/26/2055  made some analysts' 'Conviction Buy' lists. (See the chart for  Aston Martin bonds  below). Corey Mahoney (


Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Italy 165 bp and Korea 28 bp. Sovereign wideners (5Y): UK 33 bp and Ireland 30 bp.

unnamed - 2019-08-01T154530.205

New Issuance

New Issues New Issues [Continued]

1. Contourglobal Power Hldg SA (EUR) 4.125% 8/1/2025 (07/31/2019): 100MM First Lien Notes.

2. BNP Paribas (EUR) 0% 8/12/2022 (07/31/2019): 205MM Senior Unsecured Notes, Price at Issuance 100.423, Yielding -.14%.


ADI Indexes

unnamed - 2019-08-01T152132.872

iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 07/31/2019, 134.93 NAV as of 07/31/2019, 105.25
Daily NAV Change (%) +0.01% Daily NAV Change (%) -0.03%

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 -0.355%, as of 07/30/2019

Copyright 2019 Advantage Data Inc. All Rights Reserved.

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