Risk appetite wanes after Paris, Beirut attacks; Turkish banks ‘feel slightly unloved’

By Christine Van Dusen

Atlanta, Nov. 16 – Emerging markets assets took a backseat to safe-haven investments on slower Monday after the terrorist attacks in Paris and Beirut.

“We are opening softer as the event in Paris over the weekend and weak commodities temper risk appetite,” a London-based trader said.

Investors remained concerned about the Middle East, particularly issuers like Egypt, Lebanon and Tunisia, he said.

Heading into the new week, volumes were limited for bonds from the Ukraine sovereign, said Fyodor Bagnenko, a fixed-income trader with Dragon Capital.

From Turkey, banks “feel slightly unloved at the moment,” the London trader said. “Corporates feel slightly better-positioned, with Asian demand.”

In other news, China-based Beijing Properties (Holdings) Ltd.’s new issue of $300 million 5½% notes due in 2018 that priced Thursday at 99.32 saw a final order book of about $2.4 billion from 121 accounts, a market source said.

In trading, the notes were spotted at 99½ bid, “despite volatility linked to the Paris attack over the weekend,” a trader said.

The final book for the Republic of Cameroon’s new $750 million 9½% amortizing notes due 2025 that priced Friday at 98.426 to yield 9¾% was $1.2 billion, a market source said.

The notes went on to trade at 97 7/8 bid, 98.18 offered.

© 2015 Prospect News.
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