EM begins to recover from recent widening; some issuers on deck; buyers emerge for Cemex

By Christine Van Dusen

Atlanta, Oct. 16 – Flows and activity picked up on Thursday for many risky assets as the markets recovered somewhat from the recent Treasuries-related pummeling.

“A semblance of some sort of stability and a back-up in rates soothed the market after yesterday’s beating and widening,” a London-based trader.

Investment-grade bonds were among the most popular during the session, with demand noted for names like Abu Dhabi National Energy Co. and International Petroleum Investment Co.

Elsewhere in emerging markets, Russia and Ukraine were again in focus as their presidents prepared to meet on Friday in Milan to discuss the ongoing conflict, a London-based analyst said.

From Latin America, the tone was better on Thursday for corporate bonds, a New York-based trader said, with some credit trading higher and closing with a moderate 10-basis points swing on the day.

Buyers were seen for most bonds, with Mexico-based Cemex SAB de CV finally getting some attention and a small boost to the curve, he said.

In other news, Turkey’s Turkiye Sinai Kalkinma Bankasi AS (TSKB) continued its roadshow for a dollar-denominated issue of notes that could total $350 million.

China Travel Service (Holdings) Hong Kong Ltd. and India’s Indiabulls Financial Services Ltd. began roadshows on Thursday.

Korea’s SK E&S Co. Ltd. is looking to issue dollar-denominated perpetual notes.

And Dubai Aviation Corp. (FlyDubai) is looking to issue Islamic bonds.

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