Oil prices boost Venezuela, PDVSA; talks with Russia ‘constructive’; roadshows ahead

By Christine Van Dusen

Atlanta, Feb. 6 – The rebound in oil prices made for a strong end to the week for many emerging markets bonds, even as tensions between Russia and Ukraine continued and investors watched to see what would come from related talks.

Russian credit default swaps spreads were 10 basis points tighter on Friday, a London-based analyst said.

Friday’s meetings were “constructive,” according to media reports, and were expected to yield some positive headlines.

From Latin America, bonds from Venezuela and PDVSA were outperformers, with prices up between 1 point and 3 points across the curve, a New York-based trader said.

The boost came from better oil prices as well as an increase in risk appetite, he said. Also contributing to the move was that selling from real-money accounts so far this year has declined.

Asian bonds on Friday were firm, with high-grade names closing 1 basis point to 3 bps tighter, a trader said.

India’s Sintex Industries Ltd. is on a roadshow to market a dollar-denominated issue of bonds, a market source said.

China Financial Services Holdings Ltd. will set out on Monday for a roadshow to market a renminbi-denominated issue of notes, a market source said.

The City of Buenos Aires is planning to issue bonds, and Angola is looking to issue up to $1.5 billion of notes, according to market sources.

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