Chinese property developers Logan, Yuzhou issue notes; oil prices hammer Russia, LatAm names

By Christine Van Dusen

Atlanta, Dec. 1 – China’s Logan Property Holdings Co. Ltd. and China’s Yuzhou Properties Co. Ltd. sold notes on Monday as the move in U.S. Treasuries sent spreads wider for most emerging markets assets.

“We start December with Russia under pressure once again,” a London-based analyst said. “Elsewhere the tone is firmer, but with the Treasury move, spreads are generally a little wider.”

New headlines about Ukraine’s conflict with Russia – this time accusing the latter sovereign’s troops of attacking the Donestk airport – certainly didn’t help Ukraine’s bonds. They entered the week lower, following one of the worst weeks in recent history, said Svitlana Rusakova of Dragon Capital.

Russia’s bonds also suffered, but mostly because leaders at the recent OPEC meeting agreed not to cut oil production, which sent Brent prices down, the analyst said.

“Russia’s 2030s are down a point,” he said. “Liquidity remains, overall, poor in the complex.”

The drop in oil prices also hit Latin American corporate bonds on Monday, a New York-based trader said.

Notes from Brazil’s Petroleo Brasileiro SA moved wider throughout the session by as much as 25 basis points, he said.

Brazil-based Vale SA also saw its bonds widen, but only about 8 bps on light flows.

Bonds from Odebrecht SA were better-offered.

Colombia’s Ecopetrol SA slipped amid solid volumes and lots of inquiries, the trader said, and Mexico’s Cemex SAB de CV moved down a point overall.

© 2015 Prospect News.
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