Brazil’s BRF issues bonds; Ematum may restructure debt; Chinese bonds see ‘turbulent’ day

By Christine Van Dusen

Atlanta, May 29 – Brazil’s BRF SA sold notes on Friday as perpetual bonds from the Middle East caught a bid, Mozambique’s Ematum was in the news and Latin American notes widened.

“Greece is still a potential event risk,” a trader said. “Time and time again we think the market is positioned well ahead of these signposted events but they never are.”

Investment-grade names from the Gulf region lagged, a London-based trader said.

Money has flowed into bonds from Kuwait’s corporates, he said, including Kipco.

“I’m a little fearful of Ramadan and summer just around the corner – it’s June next week, and liquidity will surely only get worse over the coming weeks. Supply has ticked along this year but nowhere near enough versus redemptions and local cash liquidity.”

Most of the supply from the Middle East so far this year has been from banks, he said, with only a few issues from other sectors.

Mozambique’s Ematum was on radar screens on Friday, on the news that the state-owned tuna-fishing company will likely restructure about $850 million of debt.

In response, the company’s 6.035% notes due 2020 opened “wide and defensive,” a trader said.

From Asia, much of the trading action on a “turbulent” day focused on investment-grade bonds from China, a London-based trader said.

The market opened unchanged, then sold off, then recovered to finish the Asian session unchanged to a few basis points wider, he said.

© 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.