New issue from Kexim; risk-on session for EM bonds; Dubai gets attention; roadshows ahead

By Christine Van Dusen

Atlanta, Nov. 24 – Korea Export-Import Bank (Kexim) printed notes during a risk-on Monday for emerging markets assets, following last week’s rate cut in China and recent dovish comments from the European Central Bank.

Russia’s credit default swaps spreads tightened 8 basis points on Monday, a London-based analyst said.

“The tone is also being helped by higher oil prices,” he said. “Corporates are also trading tighter, like the sovereign, but bank flows are more limited.”

This positivity occurred even as violence increased in Ukraine, he said.

Credit default swaps spreads for Turkey narrowed 2 bps on Monday after officials from the sovereign and the United States met to talk about the situation in Syria.

Spreads for bonds from the Middle East tightened overall, but just slightly, he said.

This was influenced by the weekend’s election in Bahrain, where the Shia-led opposition boycotted and some violent clashes erupted.

Even so, the sovereign’s 2022s and 2023s rallied to catch up with the new issue of 4% 2021 notes that Bahrain Mumtalakat Holding Co. BSC priced at 99.043.

Dubai’s bonds saw most of the activity on Monday, a London-based trader said, with investors showing interest in DPWorld.

In deal-related news, roadshows were set for Pakistan, India’s Lodha Developers Private Ltd. and India’s Reliance Communications Ltd. while China’s Beijing Capital Land Ltd. mandated bookrunners.

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