Primary hosts Baidu, Ascott; risk assets rally; Lat-Am tightens a bit; issuers set talk

By Christine Van Dusen

Atlanta, June 23 – China’s Baidu Inc. and Singapore’s Ascott Residence Trust (Ascott REIT) were among the issuers to sell notes on a Tuesday that saw risk assets continue to rally, as investors held on to optimism about the resolution of Greece’s latest financial problems – or ignored the goings-on for the debt-saddled sovereign.

“It seems Greece has been pushed to the back burner for the time being,” a trader said. “Cash prices move around and close around the lows, as Treasury volatility has us adjusting levels all day.”

Bonds from Latin America-focused Pacific Rubiales moved higher on Tuesday, with the 2023s lifted in the Street, a New York-based trader said.

In other trading from Latin America, low-beta spreads tightened modestly on Tuesday, with five-year credit default swaps spreads for Brazil closing at 249 basis points from 251 bps, a trader said.

Most names held up “relatively well in the face of the recent back-up in rates,” a New York-based trader said.

Venezuela and PDVSA were part of the up-trade, he said, amid good flows and some better selling of low-beta credit.

In deal-related news, Shanghai’s Haitong Securities Co. Ltd. set talk at 5.15% for a renminbi-denominated issue of benchmark-sized notes due in three years.

And Korea Export-Import Bank (Kexim) set talk for a two-tranche issue of dollar-denominated notes due in 5˝ years and 11 years.

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