European Bond Research - September 30, 2019

Posted by Pierre Robert on Sep 30, 2019 5:26:44 PM
MARKETS ARE GENERALLY UP AND SOVEREIGN BONDS ARE STABLE. Sentiment today suggests there may be a deal forthcoming over US/China trade war and a Brexit deal may start materializing. FTSE 100 +0.75%, German DAX  +0.75%, CAC 40 +0.36%, STOXX Europe 600 +0.47%. The 10-year Gilt was down 2.1 bps.

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UPDATE TO THE CASH CRUNCH IN THE REPOS MARKET SAGA. It is suggested that the lack of operational experience of the new President of the New York Fed contributed heavily to the slow response of the Fed Repos cash crunch.  (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,  British Telecommunications Plc (GBP) 8.625% 3/26/2020 made some analysts 'Conviction buy' lists. (See the chart for British Telecommunications Plc bonds below). Pierre Robert


Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Austria 11.075 bp  and Belgium 19.05 bp. Sovereign wideners (5Y): Denmark 10.33 bp and Indonesia 90.25 bp.

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New Issuance

New Issues New Issues [Continued]

1. Mash Group Oyj (EUR) 8.25% 5/30/2022 (09/30/2019): 50MM Unsecured Notes, Price at Issuance 100, Yielding 8.25%.

(None Current 09/30/2019)



ADI Indexes

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iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 09/30/2019, 134.76 NAV as of 09/30/2019, 103.45
Daily NAV Change (%)+0.06% Daily NAV Change (%) +0.02%

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 -0.377%, as of 09/27/2019

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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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