Maybank prints notes; new issues perform in secondary; EM rally slows; inflows decline

By Christine Van Dusen

Atlanta, April 29 – Malaysia’s Malayan Banking Bhd. (Maybank) sold notes as other newly priced bonds from emerging markets issuers performed in trading on Friday, even as a rally for risky assets appeared to be wrapping up.

“Week 11 of the EM rally is now coming to an end, with Markit CDX Emerging Markets and JP Morgan EMBI indices currently trading at multi-month lows,” a strategist said. “With no doubt, the softer U.S. dollar, in line with recovering oil prices, and the positive momentum have been major drivers.”

Flows into emerging markets assets by non-resident investors, which reached $37.1 billion in March, totaled $25.5 billion in April, according to the Institute of International Finance.

“Going into the long weekend here – early May bank holiday in the UK – the short-term outlook remains positive, with central bank decisions now behind us and major concerns at the start of the year showing no signs of reappearing,” he said.

This “benign market environment” has attracted issuers, he said.

Among them was Turkey, which on Thursday priced a $1.5 billion tap of its 6 5/8% notes due 2045 at 117.781 to yield 5.4%.

“This takes the total to $3 billion on the sovereign’s longest outstanding tenor,” the strategist said. “This potentially leaves another $1.5 billion in issuance for the remainder of the year.”

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