Emerging markets take a breather after early week issuance; Belarus, Kenya trade higher

By Paul A. Harris

Portland, Ore., Feb. 23 – The emerging markets had a supportive tone late in the Friday session in London, a trader said.

Spreads were slightly lagging Treasuries.

The primary bond market was quiet following a burst of issuance earlier in the week.

A pair of sovereign deals that priced earlier in the week was performing nicely on Friday, a London-based trader said.

Republic of Belarus’ 6.2% notes due February 2030 were par 3/8 bid, par 5/8 offered on Friday.

The $600 million of 12-year paper priced at par on Thursday.

The deal saw pricing tighten from talk at 6½% and come at the long end of the contemplated 10- to 12-year profile.

New sovereign paper issued by Kenya was also turning in a solid performance in the secondary market on Friday.

The 7¼% notes due February 2028 were 101¼ bid, 101½ offered. The $1 billion tranche priced at par on Thursday.

The Kenya 8¼% notes due February 2048 were performing even better on Friday at 102½ bid, 102¾ offered. That tranche was also sized at $1 billion and also priced at par.

It's high-coupon sovereign paper that was priced to go, a trader said on Friday, and added that investors have lifted it up.

Meanwhile the Latin American space remains quiet, according to a trader.

© 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.