Emerging markets inflows remain solid; Russian Railways to host meetings with investors

By Aleesia Forni

Columbus, Ohio, March 16 - Supply would be welcome in the emerging markets space, a market source said on Friday.

The Markit iTraxx SovX CEEMEA index, which tracks Central and Eastern Europe, the Middle East and Africa credit-default swaps, traded at 251 basis points during the Friday London session, 7 bps tighter than Thursday's figure.

Emerging markets bond funds saw $1.43 billion of inflows for the week to Wednesday, according to numbers provided by fund-tracker EPFR Global.

"Inflows are still solid," a market source remarked. "It's impressive to see."

The main focus this week has been the re-pricing of the U.S. Treasuries and the implications for emerging market credit prices, the source continued.

In the primary market, Moscow-based Russian Railways has scheduled investor meetings for the week ahead.

Doha, Afren paper improves

In the secondary market, Doha Bank's 3½% notes continue to trade "pretty well," according to a market source.

Seeing no change from Thursday's number, European retail demand sat at 99.45 bid near the end of London's session, still less than its high point of 99.60.

The Qatar-based lender priced $300 million of the notes at 98.964 on March 9.

Additionally, Afren plc's (B/B) $300 million 10¼% senior secured notes due 2019 (/B/B) traded at 103 bid on Friday.

The notes priced at 99.976 to yield 10¼% on March 1.

On the horizon

Russian Railways (Baa1/BBB/BBB) will host investor meetings in Europe on Monday ahead of a possible dollar- or ruble-denominated deal, according to a market source.

The Regulation S deal is coming via JPMorgan, RBS and VTB.

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