European Bond Research - September 6, 2019

Posted by Pierre Robert on Sep 6, 2019 12:50:08 PM
BRITISH POUND HAS A HUGE REBOUND as Boris Johnson loses a second vote. A Brexit no-deal is now much less certain. FTSE 100 +0.06%, German DAX +0.06%, CAC 40 +0.064%, STOXX Europe 600 +0.22%. The 10-year Gilt loss 9.2 basis points.


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GERMANY HAS CONTINUED TO STRUGGLE. SOME SAY THEY ARE IN A RECESSION. UK has also continued to struggle with Brexit. (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 10.11 bp. Sovereign wideners (5Y): Denmark 10.11 bp and Finland 10.975 bp.

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New Issuance

New Issues New Issues [Continued]

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

2. Snam SpA (EUR) 0% 5/12/2024 (09/05/2019): 500MM Senior Unsecured Notes.


ADI Indexes

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iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 09/06/2019, 135.18 NAV as of 09/06/2019, 106.2
Daily NAV Change (%) -0.26% Daily NAV Change (%) +0.14%

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 09/05/2019

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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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