THE EUROPEAN CENTRAL BANK FURTHER CUT INTEREST RATES and launched a new stimulus program purchasing 20 billion euros worth of bonds. ECB President Mario Draghi stressed confidence in the stimulus plan, “We have relevant headroom to go on for quite a long time at this rhythm without the need to raise the discussion about limits.” FTSE 100 -0.20%, German DAX +0.34%, CAC 40 +0.45%, STOXX Europe 600 +0.29%. The 10-year Gilt rose 2.1 basis points.

 

HIGH YIELD EUROPEAN BONDS ROSE AGAINST INVESTMENT GRADE DEBT in net prices linked to actual trades. Eurozone industrial production further declined in July slipping 2 percent year-over-year slightly less than the drop in June of 2.4 percent. (Advantage Data Inc.).  Extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-yield bonds edged out high-grade debt as of 3 PM, London time.  Among European high-yield bonds showing a concurrence of top price gains at appreciable volumes traded,  Altice SA (USD) 7.625% 2/15/2025 Reg S made some analysts' 'Conviction buy' lists. (See the chart for Altice SA  bonds below). Corey Mahoney

 

LATEST NEWS: Top moves, sovereign tighteners (5Y): Korea 28 bp and UK 31 bp. Sovereign wideners (5Y): Denmark 10 bp and Finland 11 bp.

New Issues	New Issues [Continued]
1. Raiffeisen Bank Intl. AG (EUR) 0.6% 9/30/2030 (09/11/2019): 50MM Senior Unsecured Notes, Price at Issuance 100.25, Yielding .58%. 2. Aktia Bank PLC (EUR) 1.375% 9/18/2029 (09/11/2019): 70MM Subordinated Notes.

DATA CHECK:

iShares Core EUR UCITS iShares Euro High Yield UCITS NAV as of 09/12/2019, 135.04 NAV as of 09/12/2019, 104.13 Daily NAV Change (%) +0.39% Daily NAV Change (%) +0.47%

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 rate: currently 7.5% (seasonally adjusted, May 2019)
• Eurostat's quarterly GDP: 0.4% (2019 Q1)
• 6-month Euribor: current value -0.408%, as of 09/11/2019

Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com

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.