Emerging markets see lower trading, issuance volumes; Latin America activity 'very light'

By Aleesia Forni

Columbus, Ohio, March 20 - Emerging markets volumes were low on Tuesday, according to a market source, who saw some dealer- and fast-money selling.

Prices were down roughly 1 point on new issues for the day, the source said.

For a second straight day, bonds traded weak during the Asian session.

Chinese property names, including recent issuers KWG Property Holding Ltd. and Agile Property Holdings Ltd., continued to trade lower.

KWG's 13¼% senior notes due March 2017 (B1/B+/) traded as low as 96 7/8 bid, down 2.24 from last Thursday's 99.112 reoffer price, the source said. The issue size was $400 million.

Also Agile Property's 9 7/8% senior notes due 2017 traded as low as 97 3/8 bid, down about 2½ points from their issue price, the source said.

Latin America tighter

Spread compression triggered by rising yields on U.S. Treasuries generated some spread tightening in Latin America corporates, a market source said.

Brazil's Petrobras and CVRD bonds were roughly 5 bps tighter on light volume.

Abu Dhabi bond above reoffer

The National Bank of Abu Dhabi's new 3¼% notes due 2017 traded just above their reoffer price at 99.80 bid, 99.90 offered late in London's session on Tuesday, according to a trader.

The $700 million deal priced Monday at 99.753.

This marks a "sound return to the capital markets" for the bank, the source remarked.

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