Uruguay, Arab Petroleum do new deals; risky assets grind higher; roadshow ahead for Rizal

By Christine Van Dusen

Atlanta, Oct. 19 – Uruguay and Saudi Arabia’s Arab Petroleum Investments Corp. sold notes on Monday as emerging markets assets gained some support from China’s weaker but better than expected – and still fairly supportive – economic data, as well as from the weaker dollar and euro.

“Risky assets are grinding higher,” according to a report from Barclays Capital. “The so-called ‘liquidity gap’ is reshaping asset markets as the scarcity of safe, short-term assets and a general decline in fixed-income liquidity since the beginning of the financial crisis have transitioned risk that used to sit inside the financial system into the hands of regular investors.”

Investment grade bonds from Asia opened unchanged to slightly tighter, a London-based trader said.

“Some bonds got lifted” after China’s data release “in thin volume,” he said. “Korea and India cash were unchanged.”

Looking to Turkey, sovereign cash was very firm on Monday morning as the currency held on to gains, another trader said.

Bonds from Latin America were strong with light flows on Monday, a New York-based trader said.

In deal-related news, Croatia’s Hrvatska Elektroprivreda dd set talk at 6 1/8% for a $500 million issue of seven-year notes, a market source said.

Philippines’ Rizal Commercial Banking Corp. will set out on Wednesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

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