European Bond Research - October 9, 2019

Posted by Pierre Robert on Oct 9, 2019 2:37:00 PM
CHINA/US TRADE DEAL HOPED. STOCKS UP BUT TENTATIVELY. Multiple issues between China and the US have popped up: US blacklisted more China companies, NBA/China controversy over Hong Kong, China's continued reluctance to give in on trade "sovereignty issues". FTSE 100 +0.33%, German DAX  +1.04%, CAC 40 +0.78%, STOXX Europe 600 +1.21%.  The 10-year Gilt was UP 4.6 bps.

unnamed - 2019-09-10T120954.400

SOVEREIGN BOND YIELDS FOR THE UK AND US ARE UP. China/US trade talks next week seems to have multiple stumbling blocks building up in advance.  (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,  Mylan Inc. (USD) 3.95% 6/15/2026 made some analysts 'Conviction buy' lists. (See the chart for Mylan Inc. bonds below). Pierre Robert


Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Germany 10.295 bp and Belgium 18.48 bp. Sovereign wideners (5Y): China 49.615 bp and Ireland 32.69  bp.

unnamed - 2019-10-09T143419.695

New Issuance

New Issues New Issues [Continued]

1. Samhallsbyggnadsbolaget (SEK) FLT% 2/1/2023 (10/08/2019): 1000MM Senior Unsecured Notes.

2. Arlo XII Limited (EUR) 0.28% 3/23/2034 (10/09/2019): 50MM Secured Notes.


ADI Indexes

unnamed - 2019-09-10T120949.747

iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 10/08/2019, 134.67 NAV as of 10/08/2019, 102.88
Daily NAV Change (%) -0.11% Daily NAV Change (%) +0.42%

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 -0.387%, as of 10/08/2019

Copyright 2019 Advantage Data Inc. All Rights Reserved.

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.

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

Are you using AdvantageData?

AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:

  • 500,000+ U.S. and international corporate bonds
  • Over 6,200+ CDS reference entities
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 16 products and services from debt to CDS to loans to mid-market
  • Used by top buy and sell-side firms worldwide

Subscribe to Email Updates

Recent Posts