EM debt bounces around; Mexico notes improve; Frontera Energy holds off, eyes market

By Rebecca Melvin

New York, June 15 – Friday’s emerging markets debt market was similar to Thursday’s session, with fairly active trade supportive of many higher-grade credits, while many lower-grade credits bounced around to the downside.

Mexican sovereign and corporates were better on the day in tandem with the Mexican peso regaining ground after sinking to a 16-month low on Wednesday.

Mexico’s 4¾% notes were up on Friday to 91.5 from 90.6 on Thursday.

Companies like the country’s state-owned energy company Petroleos Mexicanos SAB de CV, Grupo Televisa SAB de CV and Unifin Financiera SAB de CV Sofom ENR were also better or retaining their footing after slides lower for the last month.

Pemex’s 6½% notes due 2027 were up another tick at 100.44 on Friday in active trade, compared to a close of 100.38 on Thursday and 99.75 on Wednesday.

Meanwhile, no deal talk on Frontera Energy Corp.’s planned $500 million offering of five-year senior notes emerged on Friday, and the deal was not expected to price on Friday, according to a syndicate source.

The Colombia-focused energy company, like other issuers, needs to feel comfortable with the levels they will be able to achieve on yield, the source said, adding that it wasn’t possible to speculate on when pricings will occur, only that markets need to be calmer for new issues to proceed.

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