EUROPEAN BOND RESEARCH
August 21, 2020
EUROPEAN MARKETS WERE DOWN AS EU AND UK TALKS ARE GOING NOWHERE, EVEN BACKWARDS. NEW YEAR DEADLINE IS LOOMING. FTSE 100 -0.19%, German DAX -0.51%, CAC 40 -0.3%, STOXX Europe 600 -0.21%. The 10-year Gilt was down 1.9 bps.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 23 MILLION+ CASES AND 800000+ DEATHS. (Advantage Data Inc.). Extensive corporate-bond index data showed a net daily grade 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, LYB International Finance BV (USD) 4.875% 3/15/2044 made some analysts ‘Conviction buy’ lists. (See the chart for LYB International Finance BV bonds below). Pierre Robert
|Industry Returns Tracker
|Agriculture, Forestry, Fishing
|Transportion, Communication, Electric/Gas
|Finance, Insurance, Real-Estate
|Total returns (non-annualized) by rating, market weighted.
Credit-Default Swap Market
LATEST NEWS: Top moves, sovereign tighteners (5Y): China 38.41, Belgium 15.75 . Sovereign wideners (5Y): Italy 139.88 and Greece 155.73.
||New Issues [Continued]
|1. Samhallsbyggnadsbolaget (NOK) FLT% 8/27/2025 (08/20/2020): 600MM Senior Unsecured Notes.
|iShares Core EUR UCITS
||iShares Euro High Yield UCITS
|NAV as of 08/21/2020, 133.77
||NAV as of 08/21/2020, 99.70
|Daily NAV Change (%) -0.02%
||Daily NAV Change (%) +0.03%
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: EXPECTED TO SOAR.
- Eurostat’s quarterly GDP: EXPECTED TO CONTRACT.
- 6-month Euribor: current value –0.444%, as of 08/20/2020.
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