Russia bonds tighten; Middle East long-dated notes in demand; China Taiping sets roadshow

By Christine Van Dusen

Atlanta, Aug. 27 – Russian spreads opened tighter on Wednesday and many bonds from other emerging markets saw solid demand as investors anticipated further quantitative easing in Europe and ignored increasing tensions in Russia and Ukraine.

Russian credit default swaps started the session about 4 basis points narrower, as did those from Turkey, a London-based analyst said.

“Peripheral Europe is seeing strong demand as well,” he said.

In other news from Russia, steel producer Evraz Group SA reported first-half earnings results that beat expectations.

Looking to the Middle East, longer-dated bonds were the most popular, a London-based trader said.

Dubai Holding’s 2017s put in a solid day after lagging in previous sessions, closing up 50 cents on the day.

Two-way activity was noted for Abu Dhabi Commercial Bank’s 2023 notes, he said.

In other news, China Taiping Insurance Holdings Co. Ltd. will set out on Thursday to market a dollar-denominated issue of perpetual notes.

Ghana is looking to issue a eurobond in September.

The city of Buenos Aires is postponing plans for an issue of up to $890 million of notes as a result of Argentina’s debt default, a market source said.

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