Roadshows ahead; investors hunt for yield; Turkey, Pakistan get attention; Russia draws orders

By Christine Van Dusen

Atlanta, Sept. 23 – Several issuers – including Mexico’s El Puerto de Liverpool SAB de CV, Mexico’s Banco Mercantil del Norte SA (Banorte) and Brazil-based Ultrapar Participacoes SA – set roadshows on Friday as bonds from Turkey saw some demand and notes from Pakistan were weaker.

“With the Bank of Japan and Fed out of the way, investors were in a shop-‘til-you-drop mode yesterday,” a London-based analyst said.

Investors on Friday were hunting for yield, a trader said.

Looking at Turkey, the sovereign curve saw some “decent demand” in the belly from real-money investors, he said.

“The belly of the curve outperformed 3 basis points to 5 bps,” he said. “We are closing on a soft tone, and the Street takes the curve 5 bps wider into the weekend.”

Turkish banks saw two-way activity, “but better sellers for choice,” he said. “Feels like the Street is long on risk there. Corporates are a similar story – tight valuations holding back any buyers, and more profit-takers continue to come out [after] the outperformance.”

Bonds from Pakistan were weak on Friday, a trader said.

“Sellers across the curve ahead of possible issuance,” he said.

In other news, the new $1.25 billion issue of notes due in 2036 from Russia drew a final order book of more than $6 billion, a market source said.

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