Dominican Republic, Bladex do deals; Vale earnings low, bonds well-bid; Malaysia performs

By Christine Van Dusen

Atlanta, April 30 – The Dominican Republic and Panama’s Banco Latinoamericano de Comercio Exterior (Bladex) sold notes on a firm Thursday for Asian credits, ahead of the long weekend in the United Kingdom, while Brazil-based Vale SA released low earnings.

“[Asian] high-grade cash is unchanged while new issues are generally tighter on the back of real-money demand after the rates move,” a London-based trader said.

The new deal from Hong Kong’s Cnooc Ltd. – a $3.8 billion, three-tranche offering of notes due in five, 10 and 30 years that the oil and gas exploration and production company priced on Tuesday – was mixed in trading.

Other emerging markets debt was “resilient” on Thursday morning, and just tracked weaker Treasuries instead of falling apart, another London-based trader said.

“EM is still an asset class where we expect continued inflows, so hold tight for the rally into the summer,” he said.

By the afternoon, many names were unchanged on spread, he said.

Looking to Greece, the debt-saddled sovereign and its creditors have decided to intensify their negotiations, a move that “could be positively perceived by investors,” according to a report from Schildershoven Finance BV.

Malaysia was an outperformer during the session, with the sovereign’s 2025s trading 7 bps tighter at 100 bps and the 2045s trading 5 bps tighter at 150 bps, a trader said.

© 2015 Prospect News.
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