European Bond Research - October 7, 2019

Posted by Pierre Robert on Oct 7, 2019 12:48:16 PM
BREXIT CONTINUES TO DOMINATE. No deal still seems to be remote. The Irish border is also slowly working itself out. No deal is very unpopular in Northern Ireland. FTSE 100 +0.62%, German DAX  +0.54%, CAC 40 +0.54%, STOXX Europe 600 +0.65%. The 10-year Gilt was up .8 bps.

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SOVEREIGN BONDS IN THE EU AND US are slightly mixed to noticeably lower. Stocks in Europe are catching up with their American counterparts. (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,  Telecom Italia Capital SA (USD) 7.2% 7/18/2036 made some analysts 'Conviction buy' lists. (See the chart for Telecom Italia Capital SA bonds below). Pierre Robert
 

 

Credit-Default Swap Market


LATEST NEWS: Top moves, sovereign tighteners (5Y): Austria 11.69 bp and Belgium 18.7 bp. Sovereign wideners (5Y): Germany 10.25 bp and Ireland 32.185  bp.

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New Issuance


New Issues New Issues [Continued]

1. SSG BIDCO (EUR) FLT% 10/21/2024 (10/07/2019): 50MM Secured Notes, Price at Issuance 99.

 

ADI Indexes


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DATA CHECK:
 
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 10/07/2019, 134.73 NAV as of 10/07/2019, 102.72
Daily NAV Change (%) -0.03% Daily NAV Change (%) -0.08%

OVERALL EUROPEAN CREDIT MARKET:
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 -0.389%, as of 10/04/2019

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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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