DEUTSCHE BANK'S FAILED MERGER TALKS WITH COMMERZBANK back in April now has the company undergoing a mass restructing, which means slashing roughly 18,000 jobs and exiting the global equities business. Deutsche Bank's chief executive Christian Sewing described the organizational change as "painful but unavoidable to ensure Deutsche Bank's long-term success." This comes at the same time that easing tensions between the US and China are giving hope for the downward trending German economy, despite the lower than expected investor sentiment index. 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-yeild debt as of 3 PM, London time. Among European high-grade bonds showing a concurrence of top price gains at appreciable volumes traded, Telecom Italia Capital SA (USD) 6% 9/30/2034 made some analysts' 'Conviction Buy' lists. (See the chart for Telecom Italia Capital SA below). Anna Pickett (apickett@
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. Volvo Treasury AB (USD) 2.959% 7/12/2019 (07/08/2019): 50MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2.96%.
2. Bankhaus Carl Spaengler & Co. (EUR) 0.5% 8/5/2026 (07/08/2019): 250MM Senior Non Preferred Notes, Price at Issuance 100, Yielding .5%.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 07/08/2019, 134.55||NAV as of 07/08/2019, 105.445|
|Daily NAV Change (%)||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 -0.344%, as of 07/05/2019
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