Haitong, International Container issue notes; ECB remarks spark rally, tighten EM spreads

By Christine Van Dusen

Atlanta, Jan. 22 – China’s Haitong International Securities Group Ltd. and Philippines-based International Container Terminal Services Inc. sold notes on Thursday as investors focused on the European Central Bank and quantitative easing.

After the European Central Bank announced plans for at least $1.3 trillion in quantitative easing, many emerging markets bonds “rallied hard,” a London-based trader said.

On Thursday morning, Russia’s credit default swaps opened 2 basis points tighter following Wednesday’s meeting of foreign ministers from Russia, Ukraine, France and Germany produced positive results, a London-based analyst said.

From Turkey, sovereign bonds tightened about 3 bps on Thursday morning and credit default swaps spreads narrowed 1 bp on the move in Treasuries.

And Poland’s bonds tightened as much as 3 bps on the Treasury move.

Looking to the Middle East, some spreads tightened on Thursday morning and recent trends – investment-grade and low-beta names outperforming high-yield and high-beta names – continued, another London-based trader said.

From Asia, the tone remained firm and high-grade cash bonds closed the session 2 bps to 4 bps tighter, a trader said.

“The China oil complex closed 2 bps to 5 bps tighter,” he said. “China financials ended 3 bps to 5 bps tighter.”

In deal-related news, market sources were also whispering about possible upcoming issues of notes from South Africa’s Eskom Holdings SOC Ltd. and Kuwait’s BBK.

© 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.