Grid IconAll Posts Market Summaries

European Bond Research – November 26, 2019

Posted on November 26, 2019
November 26, 2019

Bond Markets

CHINA’S CHIEF NEGOTIATOR VOICED CAUTIOUS OPTIMISM THAT A DEAL COULD GET DONE. Markets were up slightly today. Talks will likely extend into 2020 as both sides hammer out the hardest issues. Fresh M&A activity also pushed stocks up as well.  FTSE 100 +0.93%, German DAX -0.08%, CAC 40 +0.08%, STOXX Europe 600 +0.10%.  The 10-year Gilt down 4.4 basis points.

MOST OF THE MAJOR EUROPEAN SOVEREIGN BOND CURVES STEEPEN TODAY AGAIN. Shorter duration bond yields were down slightly while longer duration bonds yields went up. Longer duration bonds yields are slowly going above zero. (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,  Mylan Inc. (USD) 4.2% 11/29/2023  made some analysts ‘Conviction buy’ lists. (See the chart for Mylan Inc. bonds below). Pierre Robert

Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): Finland 10.87 France 17.97. Sovereign wideners (5Y):  Denmark  9.45 and UK 20.24.

New Issuance

New Issues New Issues [Continued]
1. Raiffeisen Bank Intl. AG (EUR) 0.7% 12/6/2029 (11/25/2019): 100MM Senior Unsecured Notes, Price at Issuance 100, Yielding .7%.

2. Tesco Corporate Treasury Services PLC (EUR) 0.875% 5/29/2026 (11/25/2019): 750MM Senior Unsecured Notes.

3. Muenchener Hypothekenbank (CHF) 3.125% PERP (11/25/2019): 125MM Junior Subordinated Notes, Price at Issuance 100, Yielding 3.13%.

ADI Indexes


iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 11/26/2019, 134.36 NAV as of 11/25/2019, 103.91
Daily NAV Change (%) +0.22% Daily NAV Change (%) +0.25%

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 ratecurrently 7.5% (seasonally adjusted, May 2019)
  • Eurostat’s quarterly GDP: 0.4% (2019 Q1)
  • 6-month Euribor: current value –0.338%, as of 11/25/2019

Copyright 2019 Advantage Data Inc. All Rights Reserved.

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.


Are you using AdvantageData?

AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:

  • 500,000+ U.S. and international corporate bonds
  • Over 300,000+ BDC fair value assessments dating back to 2000
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 15 products and services from debt to loans to mid-market
  • Used by top buy and sell-side firms worldwide


facebook share icon twitter share icon linkedin share icon
Ready to get Started? Free Trial