RAKbank sells notes; spreads tighten on Greece news; Ukraine still tense; Kexim plans deal

By Christine Van Dusen

Atlanta, Feb. 23 – Dubai-based National Bank of Ras Al Khaimah (RAKbank) sold notes on Monday as sentiment improved and spreads tightened on the move in rates and the recent news of a debt extension for Greece. But investors remained concerned about Ukraine.

Against this backdrop, credit default swaps spreads for Russia were 15 basis points wider on Monday morning while sovereign bonds moved out 10 bps to 15 bps, a London-based analyst said.

Also on Monday, bonds from Central and emerging Europe opened tighter, with strong demand sighted for Croatia and Serbia, a London-based trader said.

Trading of corporate bonds from Asia was a bit quiet on Monday as the Chinese New Year holiday continued in some regions, another London-based trader said.

Oil companies from China saw their bonds narrow by 5 bps, even as crude prices declined, he said. And property companies from China were quiet, closing unchanged to ¼ point higher.

Middle Eastern bonds put in a busy morning on Monday, then saw activity taper off later in the session while spreads held in, a trader said.

The primary market is expected to pick up, he said.

“Plenty of potential deals soon, as well, including Emirates airlines, Abu Dhabi Commercial Bank,” he said. “In Africa we may have Ivory Coast.”

In other news, Korea Export-Import Bank is looking to issue dollar-denominated floating-rate notes, according to a company filing.

© 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.