New issues from TAQA, ABC Financial Leasing; investors await Fed, Brexit vote; Wuxi advances deal

By Christine Van Dusen

Atlanta, June 14 – Abu Dhabi National Energy Co. (TAQA) and China’s Agricultural Bank of China Financial Leasing Co. Ltd. sold notes on a wider and lower Tuesday for emerging markets assets, as markets were hurt by the start of the Federal Reserve’s meeting and worries about the upcoming Brexit poll.

“Concerns among investors are increasing” ahead of the United Kingdom’s June 23 vote on whether to stay in the European Union, according to a report from Schildershoven Finance BV. “Britain’s leaving the union may trigger a substantial slowdown in global growth.”

In response, “EM credit finishes the session wider and lower but closes well off the weakest levels of the day,” a New York-based trader said.

Brazil’s five-year credit default swaps spreads finished the session at 358 basis points from 354 bps while Mexico’s closed at 181 bps from 174 bps.

“Cash prices drop as spread widening has the market adjusting levels lower with no support in the form of a United States Treasury rally today,” he said. “Lat-Am high-yield finishes mixed on the day.”

Argentina saw its Bonar 2024s stay at about 112 while its 2026s were mostly unchanged at 104.90. Venezuela’s 2027s were down at 43.50 from 43.75 and PDVSA’s 2017s closed at 66.75 from 67.75. “Both Street and client volumes picked up today, with better sellers of Latin America credit, for the most part,” he said.

© 2015 Prospect News.
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