Cambridge Industrial Trust and Baosteel Resources plan roadshows; spreads widen

By Christine Van Dusen

Atlanta, Jan. 16 – Singapore’s Cambridge Industrial Trust and China’s Baosteel Resources International Co. Ltd. set roadshows for upcoming deals on a Friday that saw spreads widen to end a volatile week for emerging markets assets.

“Market volatility continued and, once again, extended to emerging markets, with benchmark low-beta credit default swaps spreads moving 10 basis points to 15 bps wider,” a London-based trader said.

Brazil-based Petroleo Brasileiro SA moved about 5 bps wider, a New York-based trader said, while Brazil’s Vale SA was well offered and a touch wider after hitting all-time wides on Thursday.

“Clients seem to be slowly become better sellers, adding to the current malaise,” he said. “Codelco still is holding its wider spreads from Wednesday, after the World Bank forecasts for global growth were adjusted, sending copper to 12-year lows. Clients were in front of the move, as they have been better sellers for at least the last two weeks.”

Mexican petrochemical company bonds weakened as oil prices remained in focus. On Friday, they ended up flat to Monday.

“We expect the larger market for Latin American corporates to be under pressure for the next few months,” the London trader said. “There is a true lack of conviction in the market.”

© 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.