Primary hosts Venezuela’s CAF, Baosteel; EM spreads mixed; investors like recent issues

By Christine Van Dusen

Atlanta, Jan. 21 – Venezuela’s Corporacion Andina de Fomento (CAF) and China’s Baosteel Resources International Co. Ltd. were among the issuers to print notes on Wednesday as Russia’s spreads widened, Turkey’s narrowed and few Latin American credits saw action.

Spreads for bonds from Central and emerging Europe were mostly unchanged on Wednesday as market watchers whispered about upcoming issues from Romania and Poland.

Latin American bonds started the day off at a slow pace before activity picked up for only a handful of bonds, a New York-based trader said.

In trading from the Middle East, high-yield names continued to lag while long-dated assets attracted interest, a London-based analyst said.

Asian bonds continued to rally on Wednesday, with high-grade names closing as much as 5 bps tighter, a London-based trader said.

China attracted buyers, and its oil names closed 1 bp to 3 bps tighter.

“China high-grade property also rebounded,” he said.

From Korea, buyers were spotted for Export-Import Bank of Korea (Kexim) and Woori Bank.

And bonds from India were firm, with spreads narrowing 2 bps to 5 bps, with financial names outperforming.

“But new supply is capping gains,” he said.

Recent issues from Asia quieted down on Wednesday, a trader said.

China-based Huarong Asset Management Co. Ltd.’s new five- and 10-year notes were 2 bps to 3 bps tighter with good demand sighted on the 10-years, he said.

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