Issuance from Nigeria, Latvia; gas prices rise again; Pakistan, Poland, Romania see action

By Christine Van Dusen

Atlanta, Feb. 9 – Nigeria and Latvia sold notes on Thursday as emerging markets assets benefitted from a rise in gas prices spurred by news that supply in the United States has declined while demand has remained strong.

But investors remain somewhat wary.

“Political risks in the Eurozone, Asia and the U.S. are the main drivers for uncertainties at the moment,” according to a report from Schildershoven Finance BV.

In trading, bonds from Pakistan were “a touch heavy with most high-yield sovereigns, as new, cheap supply hits the screens,” a London-based trader said. “The 2036s are seeing some buyers but for the 2024s and 2025s, a few clips have come out, pushing the 2021 lower in sympathy. The 2019s are still squeezed on the curve.”

Bonds from Central and Emerging Europe saw sellers on Thursday as spreads tightened on the back of rates.

“Poland’s 2026s feel a touch heavy but Romania remains fairly well-bid, tightening back into the Hungary curve, despite the recent political noise,” the trader said. “Hungary is two-way, but the curve is flattening as Street shorts bid for 2041s. And we are yet to see Asia lifers sell in this part of the world.”

Looking to Turkey, five-year credit default swaps were well-offered, he said.

© 2015 Prospect News.
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