THE EUROPEAN COMMISSION SLAMMED ANHEUSER-BUSCH INBEV, the world’s largest brewer with a 200 million euro antitrust fine subsequent to a three year investigation. The brewer prevented cheaper beer imports into Belgium from the Netherlands by limiting sales volume and removing mandatory label information. Britain’s Labour party affirms higher wages for those under the age of 18, doubling it to 10 pounds an hour. Jeremy Corbyn the party leader expressed, “It’s time to end this discrimination. Young people’s work should be properly valued, not exploited by employers to cut their wage bill. If they’re doing the job, pay them the wage - the real living wage” 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, Deutsche Bank AG (USD) 4.5% 4/1/2025 made some analysts' 'Conviction Buy' lists. (See the chart for Deutsche Bank AG bonds below). Corey Mahoney (cmahoney@advantagedata.com).
Sovereign-Debt Snapshot
| Country | Maturity (Y) | Yield (%) | Previous (%) | Spread (bp) | |
|---|---|---|---|---|---|
| Australia | 10 | 1.740 | 1.725 | -71.7 | |
| Belgium | 10 | 0.437 | 0.438 | -201.9 | |
| France | 10 | 0.345 | 0.347 | -211.2 | |
| Germany | 10 | -0.042 | -0.047 | -249.8 | |
| Italy | 10 | 2.690 | 2.676 | 23.4 | |
| Japan | 10 | -0.045 | -0.046 | -250.2 | |
| Netherlands | 10 | 0.142 | 0.142 | -231.4 | |
| Portugal | 10 | 1.115 | 1.113 | -134.1 | |
| Spain | 10 | 0.978 | 0.983 | -147.8 | |
| Sweden | 10 | 0.069 | 0.067 | -238.8 | |
| U.K. | 10 | 1.138 | 1.126 | -131.9 | |
| U.S. | 10 | 2.457 | 2.445 | ... | |
Credit-Default Swap Market
New Issuance
| New Issues | New Issues [Continued] |
|---|---|
|
1. European Investment Bank (PLN) 2.875% 11/15/2029 (05/13/2019): 1000MM Senior Unsecured Notes, Price at Issuance 99.396, Yielding 2.94%. |
ADI Indexes
| iShares Core EUR UCITS | iShares Euro High Yield UCITS |
| NAV as of 05/13/2019, 131.47 | NAV as of 05/13/2019, 102.83 |
| Daily NAV Change (%) -0.11% | Daily NAV Change (%) -0.25% |
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 Preliminary)
- 6-month Euribor: current value -0.231%, as of 05/10/2019
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