European Bond Research - October 16, 2019

Posted by Pierre Robert on Oct 16, 2019 2:38:26 PM
WORLD BONDS AND STOCKS WERE MIXED. Multiple trade deals are in the works. Syria invasion fall out is also playing itself out. FTSE 100 -0.61%, German DAX  +1.37%, CAC 40 +0.32%, STOXX Europe 600 -0.61%.  The 10-year Gilt was up 1.7 bps.

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INITIAL OPTIMISM OVER BREXIT AND PHASE 1 CHINA/US DEAL is giving way to a wait and see situation. Hunger for concrete details in writing is evident. (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,  Sensata Technologies Inc. (USD) 4.875% 10/15/2023 Reg S made some analysts 'Conviction buy' lists. (See the chart for Sensata Technologies Inc. bonds below). Pierre Robert


Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Germany 10.025 bp and Belgium 18.545 bp. Sovereign wideners (5Y): Spain 36.825  bp and Portugal  37.625 bp.

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New Issuance

New Issues New Issues [Continued]

1. Credit Agricole London (USD) 2.375% 1/22/2025 Reg S (10/15/2019): 1000MM Senior Preferred Security, Price at Issuance 99.639, Yielding 2.45%.

2. Selecta Group BV (EUR) 5.375% 2/1/2021 Reg S (10/15/2019): 475MM First Lien Notes, Price at Issuance 100, Yielding 5.38%.


ADI Indexes

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iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 10/16/2019, 134.25 NAV as of 10/16/2019, 103.54
Daily NAV Change (%)-0.01% Daily NAV Change (%) -0.04%

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 -0.358%, as of 10/15/2019

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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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