GERMAN INVESTMENT LEADER DEUTSCHE BANK alerted 1,000 clients they are at risk of severing relationships in a compliance effort. The bank is referring to the initiative as “Know your customer” in a statement said, “This is a standardized notification that has been sent to thousands of clients globally”. Deutsche bank is demanding company-ownership information and other sensitive documentation by the end of June. FTSE 100 -0.39%, German DAX -0.25%, CAC 40 -0.51%, STOXX Europe 600 -0.22%.  The 10-year Gilt rose 0.4 basis points.

THE FINANCIAL SECTOR OF BRITAIN IS NOT PREPARED for a no-deal Brexit as “residual” preparations are still pending completion, specifically in the insurance sector.  An EU executive stated, “if the United Kingdom leaves the European Union without an agreement on 31 October 2019, this will necessarily result in some market fragmentation in financial services”.  The UK’s Financial Conduct Authority is concerned banks are leaving too few senior officials in Britain to monitor operations and reduce risk.  The EU Commission is also worried banks will not be able to fully implement contingency plans given staff relocations. 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, WPP Finance Corp. (USD) 3.75% 9/19/2024 made some analysts' 'Conviction Buy' lists. (See the chart for WPP Finance Corp. bonds below). Corey Mahoney (cmahoney@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	1.482	1.482	-65.6
Belgium	10	0.204	0.155	-193.3
France	10	0.136	0.082	-200.1
Germany	10	-0.216	-0.254	-235.4
Italy	10	2.359	2.350		22.2
Japan	10	-0.121	-0.115	-225.8
Netherlands	10	-0.040	-0.092	-217.7
Portugal	10	0.681	0.618	-145.7
Spain	10	0.605	0.551	-153.2
Sweden	10	-0.054	-0.081	-219.1
U.K.	10	0.843	0.817	-129.4
U.S.	10	2.137	2.085	...

LATEST NEWS: Top moves, sovereign tighteners (5Y): Spain 45 bp and Korea 32 bp. Sovereign wideners (5Y): France 28 bp and Sweden 12 bp.

New Issues	New Issues [Continued]
1. Luminor Bank AS of Estonia (EUR) 1.375% 10/21/2022 (06/11/2019): 300MM Senior Unsecured Notes, Price at Issuance 99.853, Yielding 1.421%. 2. Karlou BV (USD) 7.75% 6/18/2024 (06/11/2019): 300MM Senior Unsecured Notes, Price at Issuance 100, Yielding 7.75%.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 06/12/2019, 132.68	NAV as of 06/12/2019, 103.59
Daily NAV Change (%) +0.01%	Daily NAV Change (%) -0.22%

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 -0.258%, as of 06/11/2019

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