Liquidity thin, flows low ahead of Thanksgiving; ChemChina on roadshow; Zenith in focus

By Christine Van Dusen

Atlanta, Nov. 21 – Emerging markets investors on Monday looked ahead to the Thanksgiving holiday in the United States and continued to assess the likely effects of a Donald Trump presidency amid thin liquidity and softer trading for bonds from names like Turkey.

“With the United States rate and general market backdrop it really feels like the window for primary supply should now be firmly shut,” a London-based trader said. “I spent some time the tail-end of last week talking with clients and the message was clear: ‘It’s been a good year. I don’t want to blow it.’ Same can be said for most of the Street as well.”

The next month should be a “slow grind on low flows and thin liquidity as the correction throws up some value,” he said.

Turkey’s bonds on Monday opened fairly soft, with the dollar sovereign curve lagging most peers, another trader said.

In deal-related news, China National Chemical Corp. (ChemChina) was on a roadshow for a euro-denominated issue of notes, a market source said.

Looking to Africa, Zenith Bank received some attention on Monday after Fitch Ratings revised and downgraded Nigerian banks “following a reassessment of potential sovereign support for the banking sector,” according to a report from Schildershoven Finance BV.

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