European Bond Research - October 10, 2019

Posted by Pierre Robert on Oct 10, 2019 2:48:20 PM
BONDS AND STOCKS WERE GENERALLY UP BECAUSE BREXIT NO DEAL CHANCES ARE CLOSE TO 0 %. A deal of some sort is far more possible indicated by Europe and UK desire to negotiate. FTSE 100 +0.33%, German DAX +0.28%, CAC 40 +1.27%, STOXX Europe 600 +0.65%. The 10-year Gilt was UP 12.6 bps.

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US IMPEACHMENT PROCESS CONTINUES TO TRICKLE INTO EVERYONE'S THINKING. Where will this go? (Advantage Data Inc.).  Extensive corporate-bond index data showed a net daily grade 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,  ArcelorMittal SA (USD) 6.25% 2/25/2022 made some analysts 'Conviction buy' lists. (See the chart for ArcelorMittal SA bonds below). Pierre Robert


Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Germany 10.295 bp and Belgium 18.51 bp. Sovereign wideners (5Y): China 49.615 bp and Ireland 32.95  bp.

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New Issuance

New Issues New Issues [Continued]

1. Bank of Montreal (GBP) FLT% 10/19/2020 (10/09/2019): 303MM Senior Unsecured Notes, Price at Issuance 100.

2. Bekaert Corp. (EUR) 2.75% 10/25/2026 (10/09/2019): 200MM Senior Unsecured Notes, Price at Issuance 101.875, Yielding 2.46%.


ADI Indexes

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iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 10/10/2019, 134.22 NAV as of 10/10/2019, 102.99
Daily NAV Change (%) -0.30% Daily NAV Change (%) +0.12%

The euro-zone economy shows signs of negative momentum, weakening credit rating quality, and uncertainty regarding the outcome of Brexit. Closely watched indicators and rates:
  • Eurostat's unemployment ratecurrently 7.5% (seasonally adjusted, May 2019)
  • Eurostat's quarterly GDP: 0.4% (2019 Q1)
  • 6-month Euribor: current value -0.384%, as of 10/10/2019

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Topics: High Yield, Investment Grade, Loans, Analytics, bonds, junk bonds, bond market, market analytics, New Issues, Finance, Fixed Income, News, Syndicated Bonds, syndicated, research, market update

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