QNB agrees to buy NBG’s stake in Finansbank; Indian bonds could decline; Brazil outperforms

By Christine Van Dusen

Atlanta, Dec. 22 – Emerging markets investors on Tuesday were keeping an eye on Qatar National Bank SAQ after the lender agreed to buy the National Bank of Greece SA’s stake in Turkey-based Finansbank AS.

“Saw buyers on the news on the open,” a London-based trader said.

After the deal is done, Finansbank’s 2017s should trade at 103.10 bid, a London-based trader. The bonds on Monday closed at 101.62 bid, 102.12 offered.

Finansbank 2019s could trade at 105.43 bid, he said, after closing on Monday at 103.12 bid, 103.88 offered.

In other trading, India’s bonds could be affected by the slowdown in the sovereign’s growth, which could lead to a substantial increase in borrowings, according to a report from Schildershoven Finance BV.

The Indian bond market could “continue to decline on concerns about slowing economic growth that may put the budget deficit target at risk,” Schildershoven said.

And Brazil – under pressure on Tuesday morning as investors wondered what impact the new finance minister would have on fiscal policy – outperformed at the end of the session, a New York-based trader.

“Spreads tightening and cash prices up a touch from early morning lows,” he said.

Five-year credit default swaps spreads for Brazil closed Tuesday at 515 basis points from 522 bps, though most other Latin American sovereigns were unchanged, the New York-based trader said.

© 2015 Prospect News.
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