Dubai bank issues notes; ‘tricky’ morning gives way to some rallying; Tanner puts off deal

By Christine Van Dusen

Atlanta, Nov. 10 – Commercial Bank of Dubai PJSC sold notes on “tricky” Tuesday morning that later saw Latin American assets rally ahead of Wednesday’s Veterans Day holiday in the United States.

“Another tricky start,” a trader said. “Poor technicals explain the weakness in [Gulf region] perpetuals, with bids few and far between.”

Bonds from Egypt have moved about 55 basis points wider during the past week, in the wake of the plane crash in Sharm el-Sheikh that killed all 224 people on board.

Other sovereigns from Africa were “defensive” on Tuesday, moving between 10 bps and 20 bps wider, he said.

From Latin America, sovereign spreads on Tuesday finished the day tighter, a New York-based trader said.

“The market finally gets some relief from the recent bout of selling,” he said.

Brazil’s five-year credit default swaps spreads ended Tuesday at 410 bps from 423 bps, and Mexico’s moved to 150 bps from 153 bps.

Market sources were also whispering about possible notes in 2016 from Saudi Arabia, a rupee-denominated deal from India Infrastructure Finance Co. Ltd. and a $200 million to $500 million issue of bonds from Argentina’s Banco Hipotecario SA.

Chile’s Tanner Finanzas Corporativas has postponed a planned issue of $300 million notes due in five years, a market source said.

© 2015 Prospect News.
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