Greece passes reforms; EM investors stay cautious; Goldwind, China Minsheng give guidance

By Christine Van Dusen

Atlanta, July 16 – Xinjiang Goldwind Science & Technology Co. Ltd. and China Minsheng Investment Corp. Ltd. gave guidance for new deals on a Thursday that saw Greece pass strict reforms and the European Central Bank agree to provide more emergency funds. Additionally, euro zone leaders said they would loan Greece €7 billion to keep the debt-saddled sovereign’s finances going until a new bailout is approved.

Meanwhile, the tone for Asian bond trading felt “cautious, as new issues are either coming with a good concession or coming tight and ending up trading wider than reoffer,” a London-based trader said, noting that Korea Gas’ new issue was wider by 1 basis point.

China-based Tianjin Binhai New Area Construction & Investment Group Co. Ltd.’s new issue – a two-tranche $800 million deal with notes due 2018 and 2025 – initially traded wider by 15 bps, he said.

At the end of Thursday’s session, high-yield bonds from Chinese property companies saw some sellers, he said, while investment-grade corporates tightened by about 1 bp to 2 bps.

From Ukraine, tensions escalated on news that pro-Russian rebels were attacking government troops, according to a report from Schildershoven Finance BV.

All of this news is negative for Russia’s bonds, the report said.

Latin American bonds continued to firm up on Thursday afternoon, with better performance from Braskem SA’s curve after recent weakness related to slow growth in Brazil, currency weakness and the oil sell-off, a New York-based trader said.

© 2015 Prospect News.
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