Market information Tuesday August 4th 2015

Coverage ratios of Dutch pensions have declined due to the lower interest rates, as imposed by DNB, and capital market interest rates. The average coverage ratio declined from 108% to 104% in July. As was reported by pension adviser Aon Hewitt yesterday.

Last Monday U.S. ratings agency Standard & Poor’s (S&P) has changed its outlook for the European Union (EU) from stable to negative, due to the Greek economic crisis and Great Britain’s referendum on EU membership. This could mean if S&P decides to lower the EU’s rate, it would lose its AA+ rating.

The British government has started with selling the first tranche of its 78% stake shares in Royal Bank of Scotland (RBS) today. It’s aiming to sell approximately GBP 2 billion of shares. Based upon this price, total valuation would amount to GBP 32 billion.

The 6M Euribor remained unchanged at 0.05%. The 10Y Swap decreased with 4 bp to 0.96%

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.