European Bond Research - September 5, 2019

Posted by Pierre Robert on Sep 5, 2019 12:48:19 PM
MARKETS AND BOND YIELDS continued to rise for two reasons: A "No Deal Brexit" looked less likely as Boris Johnson failed to get an early election. America and China are set to sit down in October boosting hopes that a continued trade war would resolve itself. FTSE 100 -0.63%, German DAX +0.82%, CAC 40 +1.02%, STOXX Europe 600 +0.87%. The 10-year Gilt gained 11.2 basis points.

 

unnamed - 2019-08-01T152128.640

THE ECB UNDER CHRISTINE LEGARDE could open the financial spitgot to help inflate the economy by directly giving EU citizens money. (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,  Telecom Italia Capital SA (USD) 7.721% 6/4/2038 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): Korea 30.22 bp and Swedan 10.485 bp. Sovereign wideners (5Y): Denmark 10.46 bp and Finland 11.47 bp.

unnamed - 2019-09-05T124416.341

New Issuance


New Issues New Issues [Continued]

1. EP Infrastructure (EUR) 1.659% 4/26/2024 (09/04/2019): 750MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1.659%.

2. Royal Bank of Canada London (GBP) FLT% 9/14/2020 (09/05/2019): 430MM Senior Unsecured Notes, Price at Issuance 100.

 

ADI Indexes


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DATA CHECK:
iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 09/05/2019, 135.09 NAV as of 09/05/2019, 106.2
Daily NAV Change (%) -0.26% Daily NAV Change (%) +0.14%

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 09/04/2019

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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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