EUROPEAN BOND RESEARCH
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August 21, 2020
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Bond Markets
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 |
Industry |
Past Day |
Past Week |
Past Month |
Past Quarter |
YTD |
Past Year |
Agriculture, Forestry, Fishing |
-0.07% |
0.06% |
2.45% |
8.10% |
5.53% |
12.42% |
Mining |
-0.10% |
0.30% |
5.01% |
19.25% |
-0.76% |
3.43% |
Manufacturing |
-0.15% |
-0.90% |
0.79% |
6.78% |
-0.52% |
1.03% |
Transportion, Communication, Electric/Gas |
-0.04% |
-0.14% |
0.63% |
3.66% |
3.29% |
6.72% |
Wholesale |
0.39% |
0.55% |
1.52% |
8.12% |
3.50% |
6.66% |
Retail |
3.58% |
1.26% |
7.83% |
35.72% |
-17.02% |
-7.67% |
Finance, Insurance, Real-Estate |
0.04% |
0.11% |
1.69% |
7.95% |
4.06% |
9.79% |
Services |
-0.08% |
-0.42% |
2.99% |
10.09% |
1.31% |
5.77% |
Energy |
-0.75% |
-1.60% |
-11.66% |
10.12% |
-25.60% |
-31.20% |
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Total returns (non-annualized) by rating, market weighted. |
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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 Issuance
New Issues |
New Issues [Continued] |
1. Samhallsbyggnadsbolaget (NOK) FLT% 8/27/2025 (08/20/2020): 600MM Senior Unsecured Notes. |
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ADI Indexes
DATA CHECK:
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% |
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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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