| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers B > Headlines for Bank of China > News item |
Morning Commentary: EM bonds rally; Chinese banks at new tights; Rosneft ‘cautious’ about PDVSA
By Christine Van Dusen
Atlanta, June 18 – Many bonds from Europe and Asia rallied on Thursday morning as investors adjusted to the continuing turmoil in Greece ahead of a Eurogroup meeting and the release of more economic data from the United States.
“European sovereign debt rallied with the exception of Greece, although peripheral debt spreads have widened versus bunds,” according to a report from Barclays Research.
“China banks, which have been very strong throughout the weakness, rallied to new tights,” a London-based trader said. “Bank of China’s 2024s traded up at 230 bps, 6 bps tighter.”
Bonds from Korea closed the Asian session unchanged while India’s bonds moved 1 bp to 3 bps tighter, he said.
“Malaysia closed 5 bps tighter,” he said.
Also from Asia, China Shanshui Cement Group Ltd. saw Standard & Poor’s downgrade its rating by four notches to CCC with a negative outlook.
“The decision was triggered by the liquidity risk as a result of the company being hit with numerous problems after its majority shareholder was put into receivership,” according to a report from Schildershoven Finance BV. “Shanshui’s 2016 [option adjusted spread] of 910 bps is slightly above average for B Asian issuers.”
In other news, Russia’s Rosneft OAO is “being more cautious” about engaging in new projects with Venezuela’s PDVSA, Schildershoven said in its report.
“According to some sources, Rosneft will provide a $5 billion loan in exchange for the larger stake in its joint venture with PDVSA and the ability to sell the gas from its newly planned joint-project abroad, with the latter being the main hurdle currently,” the report said. “PDVSA 2017 is trading in distressed territory, with it close to 5,000 bps.”
© 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.