Oil prices improve; Lat-Am tightens; Pacifico Tres, Qatar, Kenya, Kuwait Petroleum on deck

By Christine Van Dusen

Atlanta, Jan. 26 – Investors in emerging markets debt were cautious at the start of the session on Tuesday, then gained some confidence on hopes that oil producers would reach a deal to decrease supply, which sent some spreads tighter.

Investors were also keeping an eye on the Federal Open Market Committee, which on Tuesday began its meeting.

Looking to Latin America, traders were recommending buying Chile’s 2026s and selling the sovereign’s 2025s in the morning.

By the end of the day, Latin American names were tighter, with Brazil’s five-year credit default swaps spreads moving from 480 basis points to 490 bps and Mexico’s finishing Tuesday at 202 bps from 205 bps.

“Cash prices made a move higher,” another trader said, “and finished at or near highs of the day.”

In deal-related news, Colombia’s Concesion Pacifico Tres SAS (Pacifico Tres) will set out on Jan. 30 for a roadshow to market a possible issue of notes, a market source said.

Qatar is looking to issue Islamic bonds in March or April, a market source said.

Kenya’s upcoming issue of notes could take the form of Islamic bonds, a market source said.

Kuwait Petroleum Co. is looking to issue Islamic bonds, a market source said.

And African Development Bank is planning to sell dollar-denominated floating-rate notes due in August of 2017, according to an announcement from the lender.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.