EM tightens in morning, loses some ground after Fed comments; MAF, Sri Lanka notes trade

By Christine Van Dusen

Atlanta, Oct. 28 – Emerging markets assets were tightening steadily on Wednesday until the Federal Reserve’s announcement – that interest rates would remain unchanged for now but could rise in December – left many bonds only slightly narrower.

“With the Fed out of the way, the market can move on and digest the fact that nothing much has really changed and we continue to weigh economic data and global developments and their impact on EM spreads and currencies,” a New York-based trader said.

Asian bonds opened slightly softer on Wednesday, a London-based trader said, but with a mix of actions from clients.

Latin American bonds got off to an “extremely quiet start,” a New York-based trader said. “Tough to gauge if we are inching our way a little higher here, after some profit-taking yesterday in some credits. But a firm tone is still in effect.”

On Wednesday morning, the new issue of notes from Dubai’s Majid Al Futtaim Holding LLC – $500 million 4½% notes due in 2025 that priced Tuesday at 99.841 to yield 4.52%, or mid-swaps plus 255 bps – traded at par bid, 100.15 offered, a trader said.

Looking at the new issue of notes from Sri Lanka – an upsized $1.5 billion 6.85% notes due in 2025 that came to the market Tuesday at par – traded down a point on Wednesday morning, a trader said.

© 2015 Prospect News.
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