MAF sells notes; EM buying ‘relentless’; Lat-Am spreads tighten; Tengizchevroil eyes deal

By Christine Van Dusen

Atlanta, July 11 – Dubai’s Majid Al Futtaim Holding LLC sold notes on a strong day for emerging markets bonds, with “relentless” buying and tighter spreads seen after Friday’s surprisingly good payrolls data from the United States.

“Relentless – that’s the word to use when asked to summarize the market. Relentless buying,” a trader said. “And if a bond looks squeezed, there’s even more focused relentlessness as shorts try every avenue to get bonds back.”

Most Latin American names moved higher and tighter on light volumes, a New York-based trader said.

Brazil’s five-year credit default swaps spreads closed at 304 basis points from 308 bps after trading as tight as 300 bps earlier in the day, he said. Mexico’s moved to 143 bps from 145 bps.

From the Middle East and Africa, South Africa outperformed on Monday, putting in a “stunning day,” a trader said.

Indeed, South Africa-based Eskom Holdings SOC Ltd.’s 2023s and 2025s were 28 bps tighter on the day.

Overall, spreads for Middle Eastern bonds closed between 3 bps and 10 bps tighter, a trader said, and names from Qatar were particularly strong.

In deal-related news, Kazakhstan’s Tengizchevroil LLP will set out on Tuesday for a roadshow to market a possible issue of dollar-denominated notes, a market source said.

The deal is expected to total up to $1 billion.

© 2015 Prospect News.
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