EUROPEAN BOND RESEARCH
July 30, 2020
US PRODUCED A RECORD GDP CONTRACTION OF 32.9% WHICH SENT GLOBAL MARKETS LOWER. OVER 1.4 MILLION MORE AMERICANS FILED FOR UNEMPLOYMENT. TOUGH WEEK FOR EARNINGS. FTSE 100 -2.31%, German DAX -3.45%, CAC 40 -2.13%, STOXX Europe 600 -2.16%. The 10-year Gilt was down .3 bps.
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
|1. Phoenix Pib Dutch Holding BV (EUR) 2.375% 8/5/2025 (07/29/2020): 400MM Senior Unsecured Notes, Price at Issuance 99.419, Yielding 2.5%.
2. Platform HG Financing PLC (GBP) 1.625% 8/10/2055 (07/29/2020): 350MM Secured Notes, Price at Issuance 97.872, Yielding 1.706%.
3. ADO Properties SA (EUR) 3.25% 8/5/2025 (07/29/2020): 400MM Senior Unsecured Notes, Price at Issuance 98.871, Yielding 3.5%.
4. DZ Bank AG (EUR) FLT% 8/10/2022 (07/30/2020): 250MM Senior Preferred Security.
5. Starts (Ire) Public LTD Co. (USD) 4.1% 8/28/2025 (07/30/2020): 100MM Secured Notes.
6. Sonae Sgps SA (EUR) FLT% 7/30/2025 (07/30/2020): 50MM Senior Unsecured Notes, Price at Issuance 100.
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 –0.389%, as of 07/29/2020.
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