Commercial Bank of Qatar on roadshow; Brazil’s CDS widen, Mexico’s flat; new Qatar deal trades

By Christine Van Dusen

Atlanta, May 31 – Commercial Bank of Qatar QSC was on a roadshow for a new issue of notes on a quiet post-holiday Tuesday for emerging markets assets that saw mixed performance for many Latin American names.

“The overall risk-on tone is barely lingering, as we see a lot of what looks to be range trading in a number of credits,” a New York-based trader said.

He pointed to Colombia’s Ecopetrol SA and Brazil’s Braskem SA, as well some Mexican corporates and banks.

Mexico-based Cemex SAB de CV was a “standout,” he said, “as the curve is seeing nice gains on evenly mixed inquiry from accounts the last two to three days.”

The company’s 2022s lagged a bit, but “not markedly,” he said.

Brazil-based Vale SA, meanwhile, was unable to move higher after pushing up last week, he said.

At the end of the day, Latin American credit remained mixed, with Brazil underperforming and Mexico outperforming, another trader said.

Brazil’s five-year credit default swaps spread finished at 365 basis points, about 15 bps wider, while Mexico’s were mostly unchanged at 172 bps.

The new issue of notes from Qatar – $9 billion due June 2, 2021, 2026 and 2046 – received some attention on Tuesday.

“Looks to have been digested for now, as good volumes trade in the 2021 and 2026 on tight bid offers,” a trader said.

© 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.