Primary hosts Turkey, UOB; risk assets rally, but Lat-Am does little; roadshows ahead

By Christine Van Dusen

Atlanta, March 2 – Turkey and Singapore’s United Overseas Bank Ltd. sold notes on a Wednesday that saw some better buying of emerging markets bonds, as risky assets rallied in the face of China’s economic woes.

Against this backdrop, risk appetite seemed to improve, a trader said.

“We are seeing real buying rather then spurts of short-covering, which is a good sign,” he said.

But sovereign debt from Latin America did “little on the day, and drifts wider on some names,” a New York-based trader said.

Brazil’s five-year credit default swaps spreads closed at 449 basis points from 445 bps, while Mexico’s was unchanged at 184 bps.

“Cash prices remain firm and gyrate between gains and losses throughout the session to finish essentially unchanged,” he said.

Venezuela was an exception, though, as a possible government shake-up sent the sovereign’s 2027s to 41.75 from 38.75 and PDVSA’s 2017s to 53.75 from 50.

“Good two-way flows for the session with not a whole lot of conviction seen either way as the market consolidates at these new levels,” a trader said.

Buenos Aires will depart on Friday for a roadshow to market a potential issue of notes, a market source said.

Also from Argentina, Buenos Aires-based real estate company Inversiones y Representaciones SA (IRSA) received approval from its board of directors to issue up to $470 million of global notes, according to a company filing.

© 2015 Prospect News.
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