Issuance from Hsin Chong, Slovakia; EM suffers, then rallies again; roadshow set for Mongolia

By Christine Van Dusen

Atlanta, Jan. 14 – China’s Hsin Chong Construction Group Ltd. and Slovakia sold notes on Thursday as risky assets weathered another turbulent session, at first suffering – perhaps under the weight of the strong dollar and oil prices – and later tightening into the end of the day.

“Earlier on it looked like the markets were in for another bumpy ride, but we made a nice bounce mid-morning and never looked back,” a trader said.

Five-year credit default swaps spreads for Brazil ended at 487 basis points from 502 bps, while Mexico’s moved to 190 bps from 194 bps.

The new issue of notes from Mexico – $2.25 billion 4 1/8% notes due 2026 that priced Wednesday at 99.676 to yield 4.165%, or Treasuries plus 210 bps – was being offered without a bid on Thursday, he said.

“Cash prices get a modest lift, but Treasury volumes kept levels a bit subdued despite the rally in other risk assets and overall spread tightening,” he said.

Meanwhile, bonds from Asia opened 4 bps wider but managed to tighten “a touch” as the morning went on, another trader said.

“Overall, flows are on the lighter side as compared with yesterday,” he said. “Hopes are that we can finish the week on a positive note.”

In deal-related news, Mongolia will set out on Jan. 18 for a roadshow to market a dollar-denominated issue of notes, a market source said.

© 2015 Prospect News.
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