Qatar brings huge deal; Lat-Am bonds move up; Russia, Buenos Aires trade slightly higher

By Christine Van Dusen

Atlanta, May 25 – Qatar priced a giant $9 billion issue of notes on a Wednesday that saw emerging markets assets continue to improve after Tuesday’s showing.

“Today there is more clear follow-through for higher levels, and more participation among the credits, as the global backdrop adds more wind at our backs after fairly strong performance yesterday as well,” a New York-based trader said.

Corporates from Brazil drifted higher on Wednesday morning, led by names like Gerdau SA and Vale SA, he said.

“Colombia banks and corporates are barely participating, held back mostly by technicals, even as oil continues to show promise for a move higher,” he said. “Mexico banks continue to range-trade, based on flows and liquidity.”

By the end of the session, the tone was positive for Latin American credits, as bonds moved tighter and cash prices moved higher, another trader said.

The market worked on digesting the Tuesday issue of $1.75 billion 4¾% notes due 2026 from Russia, which priced at par to yield mid-swaps plus 303 bps after talk of 4.65% to 4.9%.

On Wednesday the notes – Russia’s first not denominated in rubles since 2013 – were seen trading at 100½ bid, 101¼ offered.

In other trading, Buenos Aires’ new $890 million 7½% notes due June 1, 2027 that priced Tuesday at 99.138 to yield 7 5/8% were spotted Wednesday at about par, a trader said.

© 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.