EUROPEAN BOND RESEARCH
July 16, 2020
AMERICAN LOST ANOTHER 1.3 MILLION JOBS, BEATING EXPECTATIONS, PUSHING MARKETS DOWN. RETAIL NUMBERS BOUNCED WAY BACK, BUT THEY REPRESENT A COVID ECONOMY THAT NEEDS JOBS AND STABILITY. FTSE 100 -0.67%, German DAX -0.43%, CAC 40 -0.46%, STOXX Europe 600 -0.47%. The 10-year Gilt was down 2.6 bps.
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
|1. Toyota Motor Finance (Netherlands) BV (EUR) FLT% 7/22/2022 (07/15/2020): 50MM Senior Unsecured Notes.
2. Czech Gas Networks Investments SA R.L. (CZK) FLT% 7/22/2026 (07/15/2020): 6750MM Senior Unsecured Notes, Price at Issuance 100.
3. Spire Inc (EUR) 0.678% 2/15/2041 (07/15/2020): 50MM Secured Notes, Price at Issuance 100, Yielding .68%.
4. de Volksbank NV (EUR) VAR% 10/22/2030 (07/15/2020): 500MM Subordinated Notes, Price at Issuance 99.963.
5. Tengizchevroil Finance Co. SAr.L (USD) 2.625% 8/15/2025 Reg S (07/15/2020): 500MM Secured Notes, Price at Issuance 99.412, Yielding 2.75%.
6. Carnival Corp. (EUR) 10.125% 2/1/2026 Reg S (07/15/2020): 425MM Secured Notes, Price at Issuance 100, Yielding 10.13%.
7. Tengizchevroil Finance Co. SAr.L (USD) 3.25% 8/15/2030 Reg S (07/15/2020): 750MM Secured Notes, Price at Issuance 98.939, Yielding 3.37%.
8. Societe Generale (JPY) 2% 7/29/2022 (07/16/2020): 5063MM Senior Unsecured Notes, Price at Issuance 100, Yielding 2%.
9. Toyota Motor Finance (Netherlands) BV (EUR) FLT% 7/22/2022 (07/16/2020): 50MM Senior Unsecured Notes, Price at Issuance 100.
10. Gamma Bidco S.P.A. (EUR) FLT% 7/15/2025 Reg S (07/16/2020): 300MM Secured Notes.
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 –0.333%, as of 07/15/2020.
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