Etihad advances deal; Turkey sees buyers; Poland under pressure; Hungary rating affirmed

By Christine Van Dusen

Atlanta, Nov. 22 – Abu Dhabi’s Etihad Airways advanced a new deal on an otherwise quiet Tuesday for emerging markets assets, as investors awaited the Thanksgiving holiday in the United States and continued to assess the likely impacts of Donald Trump’s presidential win.

Bonds from Turkey were off the tights, with local buying and good two-way activity.

After Trump’s win, “the once-loved emerging markets are becoming the out-of-favor risk with EM tourists looking for the doors all at once,” a London-based analyst said. “Most investors seemed to be in the same camp, trying to keep a cautious approach on risk and light on duration without much conviction on where they see rates going to. Turkey, in particular, remains under pressure due to the current political situation and its reliance on external financing, making it highly sensitivity to changes in the macro environment.”

Blue chip corporates from Turkey remain sound, though, with demand holding up well, he said.

Looking to Poland, the sovereign cut the retirement age, which is viewed as credit-negative, according to a report from Schildershoven Finance BV.

From Hungary, the sovereign was affirmed by Fitch Ratings.

But the rating is constrained by the sovereign’s high level of government debt, the report said.

From Latin America, Venezuela-based PDVSA faced an increased likelihood of default, after delaying $404 million of bond payments.

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