Deals from ADB, Sigma Alimentos; upbeat comments from Fed give EM assets a boost; Ghana widens

By Christine Van Dusen

Atlanta, Feb. 2 – Philippines’ Asian Development Bank (ADB) and Mexico’s Sigma Alimentos SA de CV sold notes on a solid Thursday for emerging markets assets, as Federal Reserve officials remained optimistic about the U.S. economy.

Also on Thursday, Argentina’s Compania Latinoamericana de Infraestructura & Servicios SA (Clisa) was on a roadshow and Brazil’s Rumo Logistica Operadora Multimodal SA set talk for an upcoming deal.

“Despite the many central bank meetings this week, markets have turned their attention to politics,” a London-based analyst said. “Monetary policymakers are waiting for further signals and more clarity, with the Fed being no different. Fed Chair Yellen and her colleagues remained upbeat on the U.S. economy, but yesterday’s meeting did not reveal any timing for the next move, with markets expecting a hike around mid-year.”

In trading, bonds from Ghana have widened by 20 basis points on the news of an undisclosed $1.6 billion-equivalent expenditure that could push the country’s 2016 budget deficit close to double digits.

“The focus is now certainly on talks between the new government and the IMF that will take place later in the month,” the analyst said.

Market-watchers were also whispering about Paraguay, which could issue up to $550 million of bonds in March.

© 2015 Prospect News.
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