EM tone improves; China Great Wall outperforms; Eesti Energia eyes notes; roadshows ahead

By Christine Van Dusen

Atlanta, June 17 – Emerging markets investors started to come out of their shells on Wednesday after comments from German Chancellor Merkel – which helped calm some fears about the ongoing economic turmoil in Greece – and following the Federal Open Market Committee’s decision to keep rates steady.

The tone improved for Asian bonds on Wednesday morning, with many names moving as much as 3 basis points tighter, amid light flows and selective demand.

“It feels like most of the rally is driven by short-covering, with high-beta names outperforming,” a London-based trader said.

The recent issue of notes due in 2018 from China Great Wall Asset Management Corp. outperformed, with the bonds moving 4 bps tighter on Wednesday morning, he said.

“Korea closed unchanged,” he said. “India is consolidating, but corporates remain heavy. Seen good two-way in short-dated financials.”

In deal-related news, Mexico’s Grupo Posadas SAB de CV will set out on Thursday for a roadshow to market a dollar-denominated issue of notes.

Singapore’s DBS Bank Ltd. will depart on June 22 for a roadshow to market a $10 billion global bond program.

Estonia-based utility Eesti Energia AS is looking to issue euro-denominated notes.

And industry-watchers were whispering about a possible $1 billion bond from Abu Dhabi’s Etihad Airways PJSC and an issue from Zambia, both during the third quarter of this year.

© 2015 Prospect News.
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