CSI Properties, Inbrands, Ghana advance deals; Lat-Am spreads widen, but bonds well bid

By Christine Van Dusen

Atlanta, Aug. 1 – China’s CSI Properties Ltd., Brazil’s Inbrands SA and Ghana advanced deals on Monday as lower oil prices and Treasury moves led to some wider spreads, though emerging markets assets remained mostly firm overall.

“Oil is slipping below $40, equities are at intraday lows and Treasuries are not seeing a big bounce from the lows earlier, but EM credit is surprisingly resilient,” a trader said.

The long end of Brazil’s curve, though, did take a hit after performing earlier in the day. The sovereign’s 2047s were spotted down at 96¾ from 97.15 at the open, he said.

By the end of the session, credit default swaps spreads from Latin American were mostly wider while cash bonds were very well bid, another trader said.

Brazil’s five-year CDS closed at 294 bps from 291, and Mexico’s moved to 155 bps from 151 bps.

“Cash prices were well bid throughout the day and finished higher despite wider CDS spreads and lower Treasuries,” he said. “Latin American high yield finishes largely unchanged on the session despite oil weakness.”

Looking to Turkey, trading was “subdued” on Monday, a London-based trader said.

“A few trades going through the Street,” he said. “Flow is on the light side, two-way, but we are around 10 bps tighter in the sovereign, regaining some of Friday’s underperformance.”

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