Greece, Ukraine remain on radar screens; spreads narrow; Emirates, Isbank seek issuance

By Christine Van Dusen

Atlanta, Feb. 20 – Spreads tightened and two issuers – Dubai’s Emirates and Turkey’s Turkiye Is Bankasi AS (Isbank) – planned new deals on Friday as the ceasefire in Ukraine remained “shaky” at best and news of Greece’s extension made little impact.

After widening about 10 basis points on Thursday, credit default swaps spreads for Russia were 1 bp tighter on Friday morning, a London-based analyst said.

Turkey’s credit default swaps spreads on Friday retained the previous day’s tightening, he said.

“Attention now turns to next week’s rates decision in the country, where consensus is calling for a 50 bps rate cut by the Central Bank,” he said. “That reflects falling inflation expectations and immense political pressure.”

Bonds from Central and emerging Europe were slightly tighter by Friday on the move in rates, he said.

“Clearly plenty of focus on Greece,” he said.

After weeks of negotiation and a rejection from Germany, European leaders agreed to extend Greece’s bailout by four months. Now Greece has until the end of the day on Monday to outline fiscal reforms. If those reforms are rejected by creditors, the finance ministers will need to meet and negotiate again.

From the Middle East, some spreads opened tighter by Friday on the rates move and the rally in oil prices on Thursday, a trader said.

“More mixed performance in long-end bonds,” he said. “The high-beta, high-yield names were active as well.”

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