ITALY’S DEPOSITOR PROTECTION FUND, FITD rejected a plan backed by Apollo Global Management to salvage the distressed Carige bank. The FITD stated they would consider a solution involving private equity in tandem with the banks' current shareholders; Carige bank has a capital deficit of 630 million euros. FTSE 100 +0.13%, German DAX -0.62%, CAC 40 -0.19%, STOXX Europe 600 -0.29%. The 10-year Gilt dipped 3.2 basis points.

DAIMLER THE AUTOMAKER OF MERCEDES-BENZ SANK nearly 3 percent on Monday after announcing a cut to the profit forecast due to issues regarding diesel vehicles.  In order for Mercedes to comply with regulation, the brand needs to boost fuel efficiency by 22 percent by 2021.  “These warnings are terrible for auto valuations across the board. They come at a time when the industry is facing its largest emission challenge in history.”  German business confidence slipped in June for the third straight month as businesses and manufacturers report a deteriorating business climate in June.  Confidence fell to 97.4 from 97.9 last month marking a five-year low. ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-yield versus high-grade 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,  Statoil ASA (USD) 2.45% 1/17/2023 made some analysts' 'Conviction Buy' lists. (See the chart for Statoil ASA below). Corey Mahoney (cmahoney@advantagedata.com).

LATEST NEWS: Top moves, sovereign tighteners (5Y): Italy 196 bp and France 25 bp. Sovereign wideners (5Y): Spain 39 bp and Korea 32 bp.

New Issues	New Issues [Continued]
1. Royal Schiphol Group NV (AUD) 3.09% 7/1/2034 (06/24/2019):70MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.09%. 2. Telefonica Emisiones SAU (EUR) 1.957% 7/1/2039 (06/24/2019):500MM Senior Unsecured Notes.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 06/24/2019, 133.97	NAV as of 06/24/2019, 104.91
Daily NAV Change (%) -0.06%	Daily NAV Change (%) +0.03%

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 -0.308%, as of 06/21/2019

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