Russian bonds still tightening; Dial taps banks; trading better for all Lat-Am but Argentina

By Christine Van Dusen

Atlanta, Aug. 14 – Corporate bonds from Russia started Thursday’s session tighter again, even amid reports that the sovereign’s aid convoy is heading toward a rebel-controlled area of the border with Ukraine.

In deal-related news, market sources were whispering about a possible issue of tier II notes from Turkey’s Turkiye Vakiflar Bankasi TAO (Vakifbank), which could come to the market after September.

Looking to Latin America, spreads for low-beta bonds were mostly unchanged, a New York-based trader said.

Venezuela saw its notes tick up between 15 cents and 50 cents on Thursday morning while Petroleos de Venezuela SA’s (PDVSA) notes due in 2026 traded up at 59.35 on good two-way flows, he said.

PDVSA’s 2024s, meanwhile, moved to 62½ from 62.10, he said.

Brazil’s 2045s closed at 97¼ after trading on Wednesday at 95¾, he said, and Mexico’s 2044s traded at 102½ after Wednesday’s level of 100¾.

Argentina continued to take a beating in the market, as investors began to lose hope that banks in the United States might assist in reaching a solution with bond holdouts.

And bonds from the Middle East were “fairly active” on Thursday, a London-based trader said.

In deal-related news, India’s Delhi International Airport (Dial) has mandated Citigroup, HSBC, JPMorgan and Standard Chartered Bank as bookrunners for its upcoming issue of $300 million notes due in five years, a market source said.

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