Emerging markets buoyed by rates; many sovereigns firm; Abu Dhabi Crude Oil notes active

By Rebecca Melvin

New York, Oct. 30 – The emerging markets were buoyed Monday by firm rates and the assumption that Federal Reserve governor Jerome Powell is the nominee of U.S. President Donald Trump to be the next chairman of the Federal Reserve, according to market sources.

The president has not made a formal decision, but the announcement is expected sometime this week.

“It’s a busy start to the week,” a London-based trader said, adding that the long end of many sovereign credits were “very firm,” including Egypt’s 2047 notes, which were 112½ and tighter by 20 basis points over the month. And Lebanon bounced back from wider spreads notched last Thursday but remained 15 bps to 20 bps wider on the month.

Abu Dhabi Crude Oil Pipeline LLC’s two new tranches were active and just slightly tighter in terms of spread. The Abu Dhabi 4.6% notes due 2047 were 101¼ bid, 101½ offered last, compared to a up to 100½ bid, 101¼ offered on their debut on Friday.

U.S. Treasuries rose on Monday with the benchmark 10-year bond up 11/32 leaving the yield down 2.372%.

In primary market activity, there was news that Caracas, Venezuela-based regional lender Corporacion Andina de Fomento plans to sell dollar-denominated notes in a Securities and Exchange Commission-registered deal, according to a filing.

The non-callable notes are being sold via joint lead bookrunners Barclays Bank plc, Deutsche Bank Securities Inc. and HSBC.

Proceeds will be used to repay $1 billion floating-rate notes due 2018, which currently accrue interest at 1.861% and which mature on Jan. 29. Until then, CAF will invest the proceeds in high quality short-term debt instruments in accordance with its liquidity policy.

From Asia, China Construction Bank Corp. applied to issue domestic preference shares, and China Jinmao Holdings Group Ltd. is proposing to conduct an international offering of dollar-denominated subordinated guaranteed perpetual capital securities (BB) via Goldman Sachs (Asia) LLC and Standard Chartered Bank as agents.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.