Venezuela drops following elections; Abu Dhabi mostly flat in active trade; Gabon slips

By Rebecca Melvin

New York, Oct. 16 – Venezuela and Petroleos de Venezuela SA bonds were for sale on Monday with most of the curve down by about 2 points following regional elections in that country on Sunday which resulted in a resounding but unexpected victory for the ruling party.

“Most of the curve is well offered,” with near-dated paper suffering the largest losses, a trader said Monday afternoon.

The PDVSA 2020 bonds were seen 83 bid, 84 offered. The Venezuela 2022 bonds were 44 bid, 45 offered.

Elsewhere, Abu Dhabi government bonds were active in the early session on Monday with spreads closing out mostly flat to wider by 1 basis point, according to a market source.

There was volume in Abu Dhabi 3 1/8% notes due 2027, which were seen 1.5 bps tighter and printing between 99.30 bid, 99.40 offered.

The long-dated Abu Dhabi 4 1/8% notes due 2047 last printed at 161, with a z-spread about 0.5 bp wider at plus 157 bps. Many had considered this bond cheap, according to a London-based trader.

Meanwhile, there was no notable selling of Gabon’s notes on the heels of a downgrade by Fitch Ratings to B from B+ with a negative outlook. In fact, the notes were seen tighter by about 3 bps, according to the trader.

© 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.