Oil prices impact investor attitude, EM spreads; Lat-Am bonds improve; Saudi Arabia eyes deal

By Christine Van Dusen

Atlanta, May 20 – Emerging markets assets on Friday finished the week with a better tone as broader markets firmed up a bit and oil prices first climbed, then retreated somewhat on news that a Libyan port had resumed exports and that the rig count in the United States had not declined.

“U.S. Treasuries are stable after the repricing,” a London-based trader said. “Oil is back up to six-month highs, and equities are in the green. Given the supply in EM tabled for next week I do not expect investors to be looking to add today, but some may use this as a good window for some last-in-first-out balancing, given the run we have had.”

Latin American credit attempted to move higher on Friday morning amid lighter flows and volumes, a New York-based trader said.

“Credits that were pushed down the most after yesterday’s bloodletting seem to be responding,” he said, pointing to names like Ecopetrol SA and Cemex SAB de CV.

“One notable exception is [Brazil-based Vale SA], which was beat down pretty good yesterday and is doing a little better,” he said.

In deal-related news, Saudi Arabia has sent out requests for proposals to banks that could serve as bookrunners for an issue of dollar-denominated bonds, a market source said.

The sovereign could bring a new deal to the market as soon as September.

© 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.