RHB Bank, Frasers price; ceasefire, economic data, Hong Kong keep investors nervous

By Christine Van Dusen

Atlanta, Sept. 29 – Malaysia’s RHB Bank Bhd. and Singapore’s Frasers Centrepoint Ltd. sold notes on Monday as investors stayed focused on the ceasefire in Ukraine and whether the European Union would lift sanctions on Russia.

“If the ceasefire is still holding in one month’s time, for example, they will drop certain sanctions,” a London-based analyst said.

“But the outcome is extremely uncertain. An immediate removal of sanctions this week is very unlikely, in our view, as there appears to be divided opinions within Europe on the matter.”

Russian credit default swaps spreads opened on Monday three basis points wider, he said.

Also on investors minds were the ongoing protests in Hong Kong, which hurt Asian flows on Monday morning, he said. The market is also concerned about the global economic outlook.

“Generally, activity has been limited,” he said.

Turkey’s credit default swaps widened by 3 bps, as did most corporate and banking bonds, he said.

“Likewise, Central and emerging Europe and the Middle East and North Africa are generally under a little bit of pressure this morning,” he said.

In other news, the final book for Kuwait-based Burgan Bank SAK’s recent $500 million issue of 7 ¼% perpetual notes that priced at par was about $850 million, a market source said.

The notes came to the market at a spread of 532.5 bps over mid-swaps with HSBC, Citigroup, JPMorgan and National Bank of Abu Dhabi in a Regulation S deal.

© 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.