Afreximbank, BOC Aviation sell notes; FOMC remarks make little dent; Turkey outperforms

By Christine Van Dusen

Atlanta, Oct. 29 – Cairo’s African Export-Import Bank (Afreximbank), Singapore’s BOC Aviation Pte. Ltd. and Singapore’s Cambridge Industrial Trust sold notes on Wednesday as the Federal Open Market Committee’s remarks flattened much of the U.S. Treasury curve.

The FOMC on Wednesday ended the quantitative easing program in light of what appear to be improvements in the job market. So market-watchers were wondering when rates would climb.

Despite this uncertainty, the news had only a small impact on Latin American corporate bonds, a New York-based trader said.

Most bonds continued to weaken into the close, he said, though Chile’s corporates “held in pretty well and pulled back a bit,” he said.

Bonds from Mexico-based Cemex SAB de CV also were slightly weaker but still felt firm overall, he said.

Looking to Turkey, the sovereign’s bonds were a “clear outperformer, despite relatively heavy issuance, with investors attracted to the complex given low United States rate expectations, low oil prices and limited opportunities elsewhere in EM,” a London-based analyst said. “We also finally saw some buyers in Russian energy names yesterday.”

In other news from Russia, the European Union elected to keep sanctions in place for the sovereign, a widely-expected move that did not hurt bonds.

In deal-related news, Israel Electric Corp. Ltd. set a roadshow, and Oman’s BankMuscat sought sukuk issuance.

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