Tower Bersama, Shimao do deals; oil, Greece news push spreads tighter; Petrobras undulates

By Christine Van Dusen

Atlanta, Feb. 3 – Indonesia’s PT Tower Bersama Group and China’s Shimao Property Holdings Ltd. sold notes on Tuesday as spreads tightened for emerging markets assets, helped by rising oil prices, a small sell-off in Treasuries and increased optimism about Greece.

“News of progress related to Greece’s debt should support sentiment,” a London-based analyst said.

Russian credit default swaps spreads and sovereign bonds opened on Tuesday about 10 basis points tighter on Monday’s better oil prices, he said.

“Corporates are also opening up better,” he said.

Meanwhile, bonds from Brazil-based Petroleo Brasileiro SA went on a rollercoaster ride on Tuesday as the chief executive stepped down and Fitch Ratings downgraded the energy company’s local-currency issuer default ratings from BBB to BBB-, a New York-based trader said.

After tightening on Tuesday morning, the headline pushed spreads wider. The short end was the most “precarious” and “jittery,” he said.

Eventually Petrobras’ bonds closed 30 bps tighter. Brazil’s Vale SA saw its bonds tighten in sympathy, moving in about 20 bps, he said.

In deal-related news, China’s Xiwang Special Steel Co. Ltd. and Indonesia’s PT Solusi Tunas Pratama Tbk set roadshows. And market sources were whispering about a possible issue of $1 billion 10-year notes from Turkey’s Yapi ve Kredi Bankasi AS and taps of Yacimentos Petroliferos Fiscales’ (YPF) 8 7/8% 2018 bonds and 8¾% 2024 bonds.

© 2015 Prospect News.
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