China Oceanwide sets maturity for notes; Russia, Ukraine crisis continues; Turkey narrows

By Christine Van Dusen

Atlanta, Aug. 29 – China Oceanwide Holdings Group Co. Ltd. (COHG) set the tenor for an upcoming issue of notes on a Friday that had investors continuing to eye Russia and Ukraine, where there were no signs of reconciliation.

Bonds from Ukraine and Russia steadily declined during the week, with the Russian notes widening an average of 56 basis points, a London-based trader said.

On the corporate side, OAO Sberbank’s 2024s moved out 108 bps by the end of the week, the trader said. Gazprombank fared better, with the 2019s widening 40 bps.

“Euro paper also generally performed better as the prospects of quantitative easing in Europe increased,” a London-based analyst said. “Oil- and gas-linked names were particularly under pressure.”

He pointed to OAO TMK’s 2018s, which widened 75 bps, and OAO Lukoil’s 2019s, which moved out 69 bps on the week.

Looking to Turkey, banks were about 4 bps tighter on average, but trading was limited, the analyst said.

Meanwhile, bonds from Middle Eastern lenders were about 1 bp wider, with Burgan Bank the top underperformer. Its 2020s moved out 16 bps he said.

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