Issuance from Petrobras, Afreximbank; Hipotecario gives guidance; Qatar to market new notes

By Christine Van Dusen

Atlanta, May 17 – Brazil-based Petroleo Brasileiro SA (Petrobras) and African Export-Import Bank (Afreximbank) sold notes on Tuesday as the tone for emerging markets assets started off upbeat, supported by stronger oil prices, and then finished with wider spreads.

“EM credit pushes wider on the day but finishes off the widest levels seen late afternoon,” a New York-based trader said.

Brazil’s five-year credit default swaps spreads closed at 333 basis points from 329 bps, while Mexico’s moved to 170 bps from 166 bps.

“Cash prices do little as the bulk of credit swings are concentrated in the credit defaults swaps space,” he said. “Cash bonds barely flinched as U.S. Treasuries reversed course and equities hit intraday lows.”

High-yield bonds from Latin America were mixed on the day, he said.

“Flows very light on the session, as has recently been the case during market sell-offs, with real money continuing to hold bonds,” he said. “Tomorrow all eyes are on the Fed minutes, which may come across stale but have recently been very favorable to risk assets, so it will be interesting to see if that trend continues.”

In deal-related news, Qatar mandated bookrunners for a dollar-denominated issue of benchmark-sized notes that will be marketed during a roadshow, a market source said.

Argentina’s Banco Hipotecario SA set talk in the low-8% area for an up to $200 million tap of its 9¾% notes due Nov. 30, 2020, according to a market source.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.