Limited liquidity; roadshows for Bahrain, Beijing Properties, Huarong; Dubai bank deal on deck

By Christine Van Dusen

Atlanta, Nov. 9 – Emerging markets assets were weaker on Monday and liquidity began to dry up as softness in U.S. Treasuries and commodities – as well as Friday’s strong economic data from the United States – created volatility ahead of the Veterans Day and Thanksgiving holidays.

“Looks like we could have a tricky week ahead of us,” a London-based trader said. “The rate-rise probability is up to 70% ... it feels like we are setting up for a bearish year-end in EM.”

Looking to Latin America, most names moved lower on Monday morning, a New York-based trader said.

At the end of the day, most Latin American spreads were wider, with five-year credit default swaps spreads from Brazil closing at 423 bps from 409 bps and Mexico’s ending at 153 basis points from 148 bps.

In deal-related news, Commercial Bank of Dubai PSC set initial talk in the mid-swaps plus low-to-mid 200-bps area for a benchmark-sized issue of dollar-denominated notes due in five years (Baa1//A-), a market source said.

Bahrain will set out on Tuesday for a roadshow to market a possible issue of benchmark-sized and dollar-denominated notes, a market source said.

China’s Beijing Properties (Holdings) Ltd. is planning a roadshow for a dollar-denominated issue of notes, a market source said.

And China Huarong Asset Management Co. Ltd. will embark on a roadshow on Tuesday for a dollar-denominated issue of notes, a market source said.

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