UK RETAIL SALES DECLINED IN MAY for the second straight month due to poor weather conditions delaying shoppers from buying summer clothing. Sales volume shrunk by 0.5 percent in contrast to one-year prior sales increased by 2.3 percent. “We see quite a mixed picture across the rest of the sector as the decline in department store sales continued (in the three months to May), with no growth since September of last year.” The Bank of England slashes second-quarter growth amid intensifying global trade tension and domestic uncertainty with Brexit. 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, Actavis Funding SCS (USD) 4.85% 6/15/2044 made some analysts' 'Conviction Buy' lists. (See the chart for Actavis Funding SCS bonds below). Corey Mahoney (cmahoney@advantagedata.com).
Credit-Default Swap Market
New Issuance
| New Issues | New Issues [Continued] |
|---|---|
|
1. TAP SGPS SA (EUR) 4.375% 6/23/2023 (06/19/2019): 200MM Senior Unsecured Notes, Price at Issuance 100, Yielding 4.38%. 2. Volvo Treasury AB (SEK) FLT% 6/28/2021 (06/19/2019): 2000MM Senior Unsecured Notes. |
|
ADI Indexes
| iShares Core EUR UCITS | iShares Euro High Yield UCITS |
| NAV as of 06/20/2019, 133.95 | NAV as of 06/20/2019, 105.13 |
| Daily NAV Change (%) +0.29% | Daily NAV Change (%) +0.59% |
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 -0.299%, as of 06/19/2019
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