EM bonds widen on oil prices, Treasury rally; Kaisa gets downgraded; perpetuals in demand

By Christine Van Dusen

Atlanta, Jan. 5 – Emerging markets bonds were mostly wider on a somewhat slow Monday morning, effected by oil prices and the move in U.S. Treasuries.

Bonds from Turkey were among those that widened during the early session while notes from the Middle East and North Africa were “generally well-supported,” a London-based analyst said.

“We are seeing some good interest in Dubai and Bahrain names, while perpetuals are also trading well this morning,” he said.

High-grade bonds from Asia widened slightly on Monday, following a rally in U.S. Treasuries.

“The bulk of client activity was in the [Kaisa Group Holdings Ltd.] complex, with decent two-way flows initially, before better buying flows after lunch pushed the bonds higher by 6 or 7 points from the lows of the morning session,” a London-based trader said. “The only Street prints were Kaisa 2018s, up at 45 just before lunchtime, and Kaisa 2019s, up at 46½ in the afternoon.”

Most other high-yield property corporates from Asia were about ½ point to 1 point lower, a trader said.

Meanwhile, bonds from Russia stabilized somewhat on Monday, following the “exceptional volatility of mid-December,” a London-based analyst said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.