FOMC minutes help EM spreads recover; Asian issues see activity; Sharjah mandates bookrunners

By Christine Van Dusen

Atlanta, Aug. 17 – Latin American spreads on Wednesday closed mostly unchanged on Wednesday as emerging markets investors focused on the Federal Open Market Committee, which released minutes that indicated it may be necessary to raise interest rates soon.

“With little news flow amid a summer lull, the focus has shifted towards global sentiment, driven by U.S. data, Fed-speak and oil prices,” a London-based analyst said.

Latin American bonds widened earlier in the session but tightened back after the FOMC announcement, with Brazil’s five-year credit defaults swaps spreads finished the day unchanged at 254 basis points.

Mexico’s widened slightly, moving to 134 bps from 133 bps, a New York-based trader said.

In deal-related news, the Emirate of Sharjah mandated banks for a dollar-denominated issue of Islamic bonds, a market source said.

In trading, the new issue of notes from Hong Kong-based China Aircraft Leasing Group Holdings Ltd. – $300 million 4.9% notes due 2021 that priced Monday at par – was spotted at 100.705 bid, 100.392 ask, a market source said.

China’s HNA Group Co. Ltd. saw its new issue of $300 million 6% notes due Aug. 18, 2019 that priced Monday at par to yield 6% trade at 101.922 bid, 101.551 offered on Wednesday, a market source said.

India-based NTPC Ltd.’s recent Rs. 20 billion 7 3/8% green bonds due Aug. 10, 2021 that priced at 99.575 to yield 7.48% were seen at 100¼ bid, 100½ offered, a market source said.

© 2015 Prospect News.
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