National Bank of Abu Dhabi prices notes; BBK launches issue; investors await Fed remarks

By Christine Van Dusen

Atlanta, March 17 – National Bank of Abu Dhabi PJSC sold notes on Tuesday as investors awaited the results of the Federal Reserve meeting, which ends on Wednesday.

“The Fed meeting, and the market’s expectations of the possible removal of patience language and the reaction from asset classes, is the next market mover,” a New York-based trader said. “We need the Fed to help soothe emerging markets, as they have taken the brunt of the oil weakness, dollar strength and illiquid markets very hard last few weeks.”

Meanwhile, a defensive tone remained in effect on Tuesday for the Asian bond market, with high-grade paper closing unchanged to 3 basis points wider, a London-based trader said.

“Mixed performance on recent issues, with (Industrial and Commercial Bank of China Ltd.)’s 2020s holding unchanged,” he said.

Oil companies from China were between 1 bp and 3 bps wider on Tuesday, he said.

Chinese property companies were unchanged to ¼ point lower on Tuesday, the trader said.

In that sector, China’s Evergrande Real Estate Group Ltd. received some attention after rumors spread that the company had failed to repay a loan to an onshore construction company. That pushed the company’s bonds down about one point, he said.

And high-yield sovereign names were higher and about 1 bp to 3 bps tighter in spread, he said.

© 2015 Prospect News.
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