EUROZONE CORPORATE LENDING IMPROVED IN APRIL rising 3.9 percent signaling banks are lending, easing fears of a looming recession. The ECB plans to maintain the current level of lending by offering banks cheap lines of credit further stimulating the economy. Prime Minister Theresa May announced late last week she would step down on June 7th proclaiming she has done "everything I can" to push the withdrawal from the European Union Forward. Given the departure of Theresa May parliament has the opportunity to negotiate a new withdrawal agreement with their terms if the EU will allow it. 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. Sato-OYJ (EUR) 1.375% 5/31/2024 (05/28/2019): 350MM Senior Unsecured Notes.
2. Cooperatieve Rabobank U.A. (CHF) 0.25% 11/25/2027 (05/28/2019): 185MM Senior Unsecured Notes, Price at Issuance 100.125, Yielding .24%.
|iShares Core EUR UCITS||iShares Euro High Yield UCITS|
|NAV as of 05/28/2019, 131.55||NAV as of 05/28/2019, 103.14|
|Daily NAV Change (%) -0.05%||Daily NAV Change (%) -0.05%|
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 -0.240%, as of 05/27/2019
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