Ukraine fighting continues; leaders meet in Greece; Ivory Coast, Costa Rica prep bond deals

By Christine Van Dusen

Atlanta, Feb. 18 – Bonds from the Middle East and Asia managed to tighten on the sell-off in U.S. Treasuries, even as fighting continued in Ukraine and leaders continued to meet to discuss Greece’s bailout.

Russia’s credit default swaps spreads reacted positively, tightening 5 basis points, while sovereign bonds narrowed between 5 bps and 7 bps, a London-based analyst said.

From Greece, leaders were expected to request an extension on the sovereign’s loan agreement instead of an extension on the bailout program, according to a report from Schildershoven Finance BV.

Perpetual notes from the Middle East were trading Wednesday about 40 bps tighter over the week, a London-based trader said.

High-grade bonds from Asia moved 1 bp to 3 bps tighter on Wednesday on the sell-off in U.S. Treasuries and the latest headlines from Greece, a trader said.

Better buyers were seen for names from China, Hong Kong and China’s Tencent Holdings Ltd.

“Korea is a couple basis points tighter,” he said. “India continued to squeeze, with spreads 2 bps to 5 bps tighter.”

Ivory Coast’s new issue of notes will be denominated in dollars, a market source said. A roadshow is underway and will conclude on Feb. 25.

And Costa Rica is looking to issue more than $1 billion of notes by the end of 2015, a market source said.

© 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.