Emerging market credit quiet ahead of Fed news; Asia primary continues to price deals

By Rebecca Melvin

New York, Dec. 13 – Emerging market credit was subdued on Wednesday as investors awaited the U.S. Federal Open Market Committee’s statement and economic projections from its last meeting of the year.

As expected, the Fed raised its benchmark rate by a quarter of a percentage point, to a range between 1.25% and 1.5%, and revised its economic growth projection upward while maintaining its expectation for three more rate increases in 2018.

After the decision was released, a New York-based trader said activity in the Latin America region was subdued.

The Argentina century bond was little changed at 102˝ bid, 103˝ offered.

Before the decision was released, a London-based market source said, “In CEEMEA, the secondary market is relatively quiet and the primary world is ready for Christmas.”

There were no new deals announced or priced in CEEMEA or Latin America, but a couple of deals priced out of the Asia region.

China’s CIFI Holdings (Group) Co. Ltd., a Shanghai-based property development business, priced $300 million of senior perpetual capital securities at par with a 5 3/8% initial distribution rate, and Beijing-based lender Industrial and Commercial Bank of China Ltd. issued $900 million of floating-rate medium-term notes, including $600 million of notes due 2020 and $300 million of notes due 2022.

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