Deals ahead from Turk Katilim, Kuveyt Turk; Brazil’s bonds decline; Codelco widens

By Christine Van Dusen

Atlanta, Nov. 13 – Two Turkish corporates – Albaraka Turk Katilim Bankasi AS and Kuveyt Turk Katilim Bankasi AS – advanced deals on a slightly softer Friday for emerging markets assets.

“We opened a touch softer as the macro backdrop softens,” a London-based trader said. “Old trend resumes – rates better bid, lower commodities and weaker risk markets. But I’m not expecting us to sell off like we did in September, as the risks are now well posted and rates have somewhat priced in a December hike.”

Sovereign bonds from Turkey were slightly softer on Friday morning after outperforming on Thursday, he said.

Turkish banks and corporates were “heavy, overall,” he said, “with real-money lightening up on senior paper. Retail [investors are] also better sellers.”

In trading, Brazil’s bonds moved down on Friday on reports that President Dilma Rousseff could end up firing Finance Minister Joaquim Levy as a result of the sovereign’s ongoing economic crisis.

Also from Latin America, Brazil-based Petroleo Brasileiro SA released earnings data that showed a $1.01 billion-equivalent loss in the third quarter, a trader said.

Petrobras’ bonds on Friday were down at least one point after weakening into Thursday’s close, another trader said.

Also on Friday, bids were pulled back for Colombia’s banks after taking a hit early Thursday.

Chile-based Corporacion Nacional del Cobre de Chile’s (Codelco) saw bonds move wider as copper continued to break down, he said.

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