New Europe sells notes; Turkish names trade well; Petrobras widens; liquidity thinning out

By Christine Van Dusen

Atlanta, Nov. 24 – New Europe Property Investments plc sold notes on a Tuesday that saw investors showing caution as oil climbed but other commodities remained low and the dollar stayed strong.

Though oil prices climbed as much as 3% on Tuesday after a Russian fighter jet was downed near the border of Syria and Turkey, “oil credits didn’t react much,” a London-based trader said.

Meanwhile, “Turkey banks’ trading is holding well as retail continues to pick away at subordinated debt,” a trader said. “Corporates are also trading well, with strong technicals, as real money looks to top up exposure on any dips.”

Looking to Ukraine, long-dated sovereign bonds so far this week have felt some pressure, said Fyodor Bagnenko, a fixed-income trader with Dragon Capital.

From Latin America, trading on Tuesday was very quiet and mostly weaker, a New York-based trader said.

“The market, as a whole, has been feeling vulnerable and not without good reason,” he said. “Recent earnings were mixed at best, the dollar remains strong like a bull, U.S. rates look poised for a increase with today’s U.S. economic numbers toeing the line, it seems.”

The new issue market in Latin America has dried up, the trader said, with waning customer demand and weaker corporate revenue levels that have led to capital expenditure cuts.

Said another trader, “Thanksgiving on Thursday will mark an end of any decent liquidity into the year end.”

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