Singapore’s Frasers sells notes; EM volatile ahead of non-farm payrolls; Turkey in focus

By Christine Van Dusen

Atlanta, May 5 – Singapore’s Frasers Hospitality Real Estate Investment Trust sold notes on a volatile Thursday for emerging markets assets, as investors awaited the latest non-farm payrolls data from the United States.

Five-year credit default swaps spreads for Brazil closed at 346 basis points from 343 bps after trading as wide as 350 bps earlier in the day.

Mexico’s ended at 170 bps from 171 bps, a trader said.

“Cash prices also finished mixed on the day, with some long-end bonds higher on U.S. Treasury strength, whereas others are mostly unchanged,” he said. “Lat-Am high yield has Venezuela finishing modestly higher, whereas Argentina is mostly unchanged after initially rallying.”

Venezuela’s 2027s closed at 41.50 from 40.50, PDVSA’s 2017s ended at 57 from 56.50, and Argentina’s Bonar 2024s finished at 109.50 from 109.35 while the 2026s moved to 101.15 from 101.25.

Investors were also keeping an eye on Turkey, where credit has “enjoyed a solid bid in the last two months, despite geopolitical risks stemming from Syria and the Kurdistan Workers’ Party, as well as emerging differences among the top two politicians,” another trader said.

But the risk is starting to rattle some market-watchers, and credit default swaps spreads moved 6 bps wider and the sovereign’s 2045s moved out 9 bps, he said.

© 2015 Prospect News.
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