Issuance from China Longyuan Power, Hungary Eximbank, Synthos; Russian corporates tighten

By Christine Van Dusen

Atlanta, Sept. 25 – China Longyuan Power Group Corp. Ltd., Hungary’s Magyar Export-Import Bank (Hungary Eximbank) and Poland’s Synthos SA printed notes on Thursday as corporate bonds from Russia rallied and Latin American corporates took a beating in trading.

Russian corporates improved amid headlines that the sovereign’s troops were being pulled out of Ukraine.

“Some names are over 100 basis points tighter,” a London-based analyst said. He pointed to Russia-based Evraz Group’s 2017s, which tightened by 105 bps over the previous week, and the Sibur Holdings bonds due 2018 that have narrowed 77 bps.

“We remain optimistic on Russian credit but think the rally could fade as we move closer to the end of the month, when the European Union is expected to review the ceasefire,” he said.

In other news from Russia, a Moscow court decided to keep AFK Sistema’s chairman under house arrest for allegedly laundering money. In response, Sistema’s bonds have performed well, trading at about $90 after moving as low as $81, he said.

The picture was much bleaker for Latin American corporates, a New York-based trader said, which put in their weakest day in months.

Though some names regained ground by the end of trading on Wednesday, Thursday was a different story, with risk-off trading hurting most assets and killing liquidity.

Bonds from Brazil’s Petroleo Brasileiro SA (Petrobras) and Vale SA moved wider and bids for Mexico-based Cemex SAB de CV were hit, he said.

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