China Development sells notes; EM starts stronger, then weakens on Fed; roadshow for Hua Han

By Christine Van Dusen

Atlanta, Jan. 27 – China Development Bank sold notes on Wednesday, another rollercoaster session for emerging markets assets, starting off stronger on the jump in oil prices, then retreating after the Federal Open Market Committee’s remarks.

Overall, credits from Latin America “that have been consistently pushed lower within this global volatility and malaise started to turn back around yesterday and are gaining a bit more momentum today,” a New York-based trader said early on.

The names that were improving the most included Brazil-based Petroleo Brasiliero SA, Brazil’s Vale SA and Mexico’s Cemex SAB de CV. Brazil-based Braskem SA continued to move higher.

Azerbaijan received some attention on Wednesday as the Central Bank looked to consolidate the country’s banking system, closing four banks in the past week, according to a report from Schildershoven Finance BV.

Meanwhile the sovereign was said to be readying an issue of dollar-denominated notes.

Market sources were also whispering about a possible issue of notes from Indonesia, which could total $2 billion and may be led by CIMB, Citigroup, Deutsche Bank, Dubai Islamic Bank and Standard Chartered Bank.

Traders also mentioned that Buenos Aires could issue between $500 million and $1 billion of notes this year.

China’s Hua Han Health Industry Holdings is on a roadshow for a dollar-denominated issue of notes, a market source said.

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