Good day for EM as oil rallies; Alternatifbank sells notes; IMF calls global growth ‘sluggish’

By Christine Van Dusen

Atlanta, April 12 – Turkey-based Alternatifbank AS sold notes on Tuesday as oil rallied, the International Monetary Fund released an economic update and a congressional committee in Brazil voted in favor of proceeding with the president’s impeachment process.

The IMF found that “global growth continues, but at a sluggish pace that leaves the world economy more exposed to risks,” according to the semi-annual World Economic Outlook.

Against this backdrop, Latin America put in a “stellar session” on the strength of the oil rally, a New York-based trader said.

And even as Brazil’s political turmoil continued, five-year credit default swaps spreads for the sovereign tightened to 355 basis points from 373 bps, while Mexico’s moved to 162 bps from 172 bps.

“Cash prices take spread-tightening in stride and grind higher as United States Treasury weakness does little to deter the overall bid,” he said. “Lat-Am high yield also finishes higher on the day, with Venezuela getting a solid boost from the oil rally.”

Indeed, the sovereign’s 2027s traded at 38.25 from 37.50, and PDVSA’s 2017s were up to 53.50 from 52.75.

“Good two-way flows for the session, with better buyers more dominant than sellers,” the New York trader said.

In other news, Russia’s OJSC VimpelCom will set out on a roadshow for a possible issue of dollar-denominated notes, a market source said.

© 2015 Prospect News.
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