Turk Eximbank prices; trading ‘lackluster’; Lat-Am CDS widen; Gulf names get support

By Christine Van Dusen

Atlanta, Feb. 1 – Turkey’s Turkiye Ihracat Kredi Bankasi AS (Turk Eximbank) sold notes on a slow Monday for emerging markets assets, as investors remained focused on China’s economy, the price of oil and the state of equities.

“Lackluster Monday overall, with pockets of activity,” a trader said. “We started off typically, on a firm footing, before fading into the close.”

Some “light pressure” remained on names like Brazil-based Vale SA, which was recently downgraded, another trader said.

“Usual slow Monday morning,” he said. “Inquiry is light on the heels of those moves lower. Buyers seen last week will most likely become timid again as they try to stay in front of any exacerbated move lower.”

Said another trader: “Felt like a bit of contagion running through Latin American credit throughout the day.”

Brazil-based Gerdau SA was another Latin American corporate that moved lower on Monday.

“It looks to be well-offered in the Street, with bids pulled back,” he said.

Looking to the Middle East, some profit-taking was seen on Monday, a London-based trader said.

“Some paper came out at the long end, with DP World and Saudi Electricity Co. trading down,” he said. “Qatar’s 2040 and 2042 were popular for most of the session.”

Long-dated bonds from International Petroleum Investment Co. and Abu Dhabi National Energy Co. (TAQA) saw some support.

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