European Bond Research - September 3, 2019

Posted by Pierre Robert on Sep 3, 2019 12:23:26 PM
BREXIT DRAMA AND US MANUFACTURING contractions are pushing bond yield and stock markets lower. Boris Johnson lost his majority vote. The pound rebounded from a 35 year low. The vote shows that a slight majority of Parliament would prefer some sort of exit deal. FTSE 100 -0.44%, German DAX -0.51%, CAC 40 -0.71%, STOXX Europe 600 -0.44%. The 10-year Gilt lost 2.1 basis points.

 

unnamed - 2019-08-01T152128.640

GERMANY'S MANUFACTURING continued to contract. Their manufacturing rating is currently at 43.5, down from 43.6 in July. With a negative yield curve and continued contraction in the economy, deflationary forces are increasing in Germany.(Advantage Data Inc.).  Extensive corporate-bond index data showed a net daily yield 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,  AstraZeneca PLC (USD) 4% 1/17/2029 made some analysts' 'Conviction buy' lists. (See the chart for AstraZeneca PLC bonds below). Pierre Robert
 

 

Credit-Default Swap Market


LATEST NEWS: Top moves, sovereign tighteners (5Y): Spain 40.36 bp and Swedan 40.36 bp. Sovereign wideners (5Y): Austria 11.565 bp and Austria 161.72 bp.

unnamed - 2019-09-03T122002.057

New Issuance


New Issues New Issues [Continued]

1. Daimler Canada Finance (NOK) 2% 9/11/2023 (09/03/2019):1000MM Senior Unsecured Notes.

2. RTE Reseau de Transport d'Electricite SA (EUR) 0% 9/9/2027 (09/03/2019): 500MM Senior Unsecured Notes.

 

ADI Indexes


unnamed - 2019-08-01T152132.872

DATA CHECK:
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 09/03/2019, 135.48 NAV as of 09/03/2019, 105.99
Daily NAV Change (%) -0.18% Daily NAV Change (%) -0.12%

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 -0.439%, as of 09/02/2019

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.

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