Primary hosts ADB; Honduras, Metro de Santiago, Genneia, Aerodom, Egypt on deck; FOMC eyed

By Christine Van Dusen

Atlanta, Jan. 5 – Manila-based Asian Development Bank (ADB) priced notes and several issuers lined up roadshows on a Thursday that saw emerging markets investors considering the implications of the Federal Reserve’s latest minutes.

“Yesterday’s minutes from the FOMC meeting on Dec. 13 and 14 revealed a generally more hawkish view by the participants,” a London-based analyst said. “Almost all agreed that a more expansionary fiscal policy could spur growth and result in a faster pace in rate.”

But uncertainty remains, he said.

“It remains to be seen what fiscal policies will be implemented and how those might impact the economic outlook,” he said. “Markets decided to look past the minutes, with the dollar retreating further and yields on Treasuries starting lower into the day, for which the renminbi is partly seen as responsible. The Chinese currency was seen accelerating its gains against the dollar, driven in part by strong economic data.

“It remains an otherwise calm morning in terms of news flows in EM, but we are seeing Treasuries coming off the tights and a reversal of the early gains in the FX markets, with the Turkish lira underperforming once more,” he said.

Meanwhile, Honduras, Chile’s Empresa de Transporte de Pasajeros Metro SA (Metro de Santiago), Argentina’s Genneia SA, Dominican Republic’s Aeropuertos Dominicanos Siglo XXI SA (Aerodom) and Egypt advanced deals.

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