Issuance from TSKB; investors eye Brazil impeachment proceedings; eurobonds unlikely for Ghana

By Christine Van Dusen

Atlanta, May 12 – Turkey’s Turkiye Sinai Kalkinma Bankasi (TSKB) priced notes on a wider and lower Thursday for Latin American assets, as investors watched the impeachment proceedings in Brazil and also noted the weakening of U.S. Treasuries.

As a result, the tone on Thursday was odd, a New York-based trader said, with mixed performance for many bonds.

Inquiry and volumes were more subdued than they have been since Monday, he said, and Brazilian corporates were moving slightly higher.

Names like Brazil-based Vale SA were “not as jumpy” while Colombia’s Ecopetrol SA saw lower inquiry and volumes and high-grade names from Mexico were quiet, he said.

At the end of the day, Brazil’s five-year credit default swaps spreads were seen at 326 basis points from 323 bps after opening as tight as 316 bps, another New York-based trader said.

Mexico’s CDS closed at 165 bps from 164 bps and cash prices slumped, he said.

In other news, the International Monetary Fund said that Ghana was meeting the majority of requirements as part of its financial aid program, except for steps related to wages and central bank assets, the strategist said.

“The fund’s mission chief said that Ghana has to find other available sources, as markets aren’t conducive for eurobonds,” he said.

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