BRITISH STEEL COLLAPSES, forced into liquidation on Wednesday after failing to secure an emergency 30 million pound loan from the government. “The company in liquidation is continuing to trade and supply its customers while I consider options for the business. Staff have been paid and will continue to be employed.” The failing company will leave 25,000 people out of work, 20,000 of which depend on its supply chain and are not directly employed by British Steel. 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. Vodafone Group PLC (EUR) 2.5% 5/24/2039 (05/21/2019): 750MM Senior Unsecured Notes, Price at Issuance 98.978, Yielding 2.566%.
2. HSBC Holdings PLC (GBP) 3% 5/29/2030 (05/21/2019): 750MM Senior Unsecured Notes, Price at Issuance 99.601, Yielding 3.047%.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 05/22/2019, 131.56||NAV as of 05/22/2019, 103.43|
|Daily NAV Change (%) -0.08%||Daily NAV Change (%) -0.12%|
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 -0.244%, as of 05/21/2019
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