Azerbaijani bank, Tencent, Security Bank plan deals; oil prices climb; Ukraine struggles

By Christine Van Dusen

Atlanta, Feb. 2 – International Bank of Azerbaijan set a roadshow while China’s Tencent Holdings Ltd. and the Philippines’ Security Bank Corp. planned new issues on Monday as oil prices rallied and the ceasefire in Ukraine failed, with separatists firing rockets into Eastern Ukraine.

Oil climbed on Monday to about $4 a barrel, a rise of about 11% since Thursday. Russian credit default swaps tightened a few basis points on the news, a London-based analyst said.

Turkish credit default swaps also narrowed, this time by about 2 bps, while sovereign bonds widened about 10 bps.

“In Turkey, the Central Bank continues to face pressure from the government to cut rates further,” he said. “Inflation data on Tuesday could result in an emergency meeting on Wednesday, and an emergency rate cut as a result.”

Additionally, several banks from Turkey released earnings results on Monday, which sent bank bonds wider by as much as 12 bps.

From Asia, economic data for China came in lower than expectations and put pressure on many names while trading was mostly quiet for most high-grade bonds, which closed between 2 bps and 5 bps wider, a London-based trader said.

“The rally in U.S. Treasuries kept real-money accounts sidelined in Asia, but after the London open we had better sellers in the 10-year bucket,” he said.

Oil corporates closed 2 bps to 4 bps wider on Monday while bonds from Korea softened slightly, he 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.