Roadshow announcements abound for EM; Lat-Am moves higher, tighter; Turkey, Qatar trade

By Christine Van Dusen

Atlanta, June 2 – Numerous emerging markets issuers – including China’s Tianjin Infrastructure Construction & Investment (Group) Co. Ltd., India’s Samvardhana Motherson Automotive Systems Group BV, Mexico’s Fibra Uno and Brazil’s Eldorado Brasil Celulose SA – on Thursday were on or planning roadshows as Latin America bonds moved higher and spreads narrowed on stable oil prices, higher U.S. Treasuries and firm equities.

“Cash prices relentlessly bid,” a New York-based trader said. “Early-morning it seemed like the market was in for a bit of a sell-off but oil and equities recovered, which had EM bonds reverse course as well.”

Five-year credit default swaps spreads for Brazil ended the session at 351 basis points from 360 bps, while Mexico’s moved to 167 bps from 170 bps.

“Latin American high-yield finishes mixed on the day, with Argentina giving back much of the gains from yesterday, whereas Venezuela jumps on positive news headlines regarding PDVSA debt servicing,” he said.

“Flows today saw better buying of all EM low-beta names,” he said.

In other trading, the new issue of 4.251% notes due 2021 from Turkey that priced at par traded at 100.45 bid, 100.55 offered.

And Qatar’s 2 3/8% 2021s continued to trade well, a London-based trader said.

In other news, Russia’s Evraz Group SA has mandated Barclays, Gazprombank, ING, JPMorgan, Societe Generale CIB and VTB Capital as joint bookrunners for a dollar-denominated issue of notes, a market source said.

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