WAGES IN THE EURO ZONE INCREASED at the fastest rate on record in the first quarter indicating positive momentum for the bloc relieving concerns of an imminent downturn. Salaries rose 2.5 percentduring the first three months while inflation slowed to 1.2 percent in May. The Bank of England is expected to keep interest rates on hold following Thursday’s meeting despite warnings from senior officials of multiple rate increases this year. ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-
Credit-Default Swap Market
New Issuance
| New Issues | New Issues [Continued] |
|---|---|
|
1. Fiserv Inc. (GBP) 2.25% 7/1/2025 (06/17/2019): 525MM Senior Unsecured Notes, Price at Issuance 99.415, Yielding 2.356%. 2. Legrand SA (EUR) 0.625% 6/24/2028 (06/17/2019): 400MM Senior Unsecured Notes. |
|
ADI Indexes
| iShares Core EUR UCITS | iShares Euro High Yield UCITS |
| NAV as of 06/18/2019, 133.47 | NAV as of 06/18/2019, 104.4 |
| Daily NAV Change (%) +0.57% | Daily NAV Change (%) +0.72% |
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 -0.268%, as of 06/17/2019
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