NON-PERFORMING LOANS WITHIN THE EUROPEAN UNION are regressing to near pre-crisis levels declining 3.3 percent in the third quarter of 2018. According to the EU Commission, “Despite clear improvements, high ratios of NPLs do remain a challenge in some member states and deserve continued attention”. Industrial output in Germany dragged the eurozone production lower in April for the second consecutive month slipping 0.5 percent month-over-month. Automotive production fellsignificantly particular in the UK which experienced its largest drop on record. ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-
|Country||Maturity (Y)||Yield (%)||Previous (%)||Spread (bp)|
Credit-Default Swap Market
|New Issues||New Issues [Continued]|
1. International Game Technology (EUR) 3.5% 6/15/2026 (06/12/2019): 750MM Secured Notes, Price at Issuance 100, Yielding 3.5%.
2. JP Morgan Chase Bank NA (EUR) FLT% 6/18/2021 (06/12/2019):301MM Unsecured Notes.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 06/13/2019, 132.56||NAV as of 06/13/2019, 103.58|
|Daily NAV Change (%) -0.05%||Daily NAV Change (%) +0.10%|
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 -0.259%, as of 06/12/2019
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.