TENSIONS WITH CHINA OVER HONG KONG AND BLAMING THE CORONA VIRUS PANDEMIC ON CHINA, ARE CAUSING MARKETS TO BE DOWN. A NEW COLD WAR BETWEEN THE US AND CHINA ARE CAUSING TENSIONS TO RAPIDLY RISE. FTSE 100 -2.29%, German DAX -1.65%, CAC 40 -1.59%, STOXX Europe 600 -1.6%. The 10-year Gilt was down 2.7 bps.
European Bond Research – May 29, 2020Posted on May 29, 2020
EUROPEAN BOND RESEARCH
May 29, 2020
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
|1. Barclays Bank PLC (USD) 0% 6/4/2050 (05/28/2020): 50MM Senior Unsecured Notes, Price at Issuance 100, Yielding 0%.
2. Hilti AG (CHF) 0.05% 7/2/2025 (05/28/2020): 150MM Senior Unsecured Notes, Price at Issuance 100.187, Yielding .01%.
3. Banque Fed du Credit Mutuel (EUR) 0.75% 6/15/2023 (05/28/2020): 50MM Senior Preferred Security.
4. Credit Agricole SA (EUR) VAR% 6/5/2030 (05/28/2020): 750MM Subordinated Notes, Price at Issuance 99.995, Yielding 1.626%.
5. BASF SE (EUR) 0.101% 6/5/2023 (05/28/2020): 1000MM Senior Unsecured Notes, Price at Issuance 100, Yielding .101%.
6. Essilorluxottica (EUR) 0.25% 1/5/2024 (05/28/2020): 500MM Senior Unsecured Notes.
7. Essilorluxottica (EUR) 0.5% 6/5/2028 (05/28/2020): 1250MM Senior Unsecured Notes.
8. Yara International ASA (USD) 3.148% 6/4/2030 Reg S (05/28/2020): 750MM Senior Unsecured Notes, Price at Issuance 100, Yielding 3.15%.
9. Commerzbank AG (EUR) VAR% 12/5/2030 (05/28/2020): 750MM Subordinated Notes, Price at Issuance 99.527, Yielding 4.086%.
10. BPCE SA (EUR) 0.25% 6/9/2023 (05/29/2020): 50MM Senior Preferred Security.
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 –0.142%, as of 05/28/2020.
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