National Bank of Oman, Agricultural Bank of China price; September ends with a whimper

By Christine Van Dusen

Atlanta, Sept. 30 – National Bank of Oman SOAG and Agricultural Bank of China Ltd. printed notes on Tuesday to end a challenging, weaker month for emerging markets assets.

“Flows today are a little bit all over the place, but probably for choice, there are better sellers around,” a London-based trader said.

Spreads over the month of September have struggled for names from the Middle East, he said.

“Far more bonds are wider than tighter, the opposite of the bulk of this year,” he said.

Among the notes to take the biggest beating during the month were the 2015s from Dar al Arkan Holdings.

“They’ve been pounded, with very little support,” he said. “This bond matures in February but has really been heavy, and this curve is inverted now.”

Still, some bonds managed to perform during the month, including Kuwait Energy’s 2019s, he said.

“It’s now very tricky to source,” he said. “Superb effort.”

Looking to Latin America, it was another down day, with most corporate names trading near the previous day’s close, a New York-based trader said.

Though spread-based credits tightened a touch at the open, most moved lower as the day went on, he said.

Volumes were high for Brazil’s Petroleo Brasileiro SA (Petrobras), he said, while Mexico’s Cemex SAB de CV held in fairly well.

But other Mexican corporates were at lows not seen for a long time, he said.

© 2015 Prospect News.
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