New deal from Hong Kong Airlines; investors eye Turkey, Halkbank; South Africa in focus

By Christine Van Dusen

Atlanta, March 30 – Hong Kong Airlines Ltd. was among the issuers to print notes on Thursday as investors continued to keep tabs on developments in South Africa, in Turkey and for Turkiye Halk Bankasi AS (Halkbank).

“The recent events in South Africa and the arrest of the deputy CEO of Halkbank continue to dominate the headlines,” a London-based analyst said. “In both cases, it is a wait and see game.”

Taking a closer look at Turkey, the U.S. Secretary of State visited Ankara on Thursday, and the relationship between the two countries appeared to be improving, the analyst said.

“Discussions will likely include the ongoing Syria conflict, the fight against [Daesh], extradition demands on Fethullah Gulen by Turkey and the recent arrest of Halkbank’s deputy CEO,” he said.

Said a trader, “After some initial selling of the Halkbank curve yesterday morning the bonds held in as we await more clarity on how the bank can be pulled into the scandal. Saw buyers of the 2017 late in the day.”

Downside risks remain, another trader said, so it is “unlikely that Halkbank bonds will recover fully from the recent sell-off anytime soon.”

Against this backdrop, the Turkish sovereign set the maturity date at April 6, 2023 for its upcoming issue of dollar-denominated and benchmark-sized Islamic bonds.

© 2015 Prospect News.
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