Philippines prices ¥100 billion Samurai bonds at tight end of guidance; EM outperforms stocks

By Paul A. Harris

St. Louis, Feb. 23 - Emerging markets debt outperformed stocks, which sold off sharply in Europe and somewhat less precipitously in the United States on Tuesday, sources said.

Asian credit-default swaps widened slightly during the New York session, according to a trader there who focuses on Asian fixed income.

Lower-beta credits were 1 to 2 basis points wider, while higher-beta names were 3 to 4 bps wider.

CDS contracts on Hutchison Whampoa's bonds maturing in 2019 were 185 bps bid, 195 bps offered, unchanged.

Meanwhile Indonesia's five-year CDS were 194 bps bid, 204 bps offered, 2 bps wider, but basically unchanged on the day, the trader said.

The market remains pretty much range-bound, the trader commented.

Earlier the story out of Europe was similar: emerging markets outperformed equities.

Brazil's five-year CDS were 129 bps mid, 5 bps tighter, in the middle of the European afternoon, according to a market source there.

Mexico's five-year CDS were 127 bps mid, 4 bps tighter.

Russia's five-year CDS were 182 bps mid, 5 bps tighter.

OAO Gazprom's five-year CDS were 256 bps mid, 8 bps tighter.

Meanwhile, Argentina's five-year CDS were 1,103 bps mid, 10 bps tighter.

Philippines Samurai prices tight to talk

The Republic of the Philippines priced a ¥100 billion issue of 10-year fixed-rate Samurai bonds at a spread to mid-swaps of 85 bps on Tuesday.

The spread printed at the tight end of the mid-swaps plus 85 to 90 bps guidance.

Daiwa Securities Capital Markets, Mitsubishi UFJ Securities and Nomura Securities Co. were the leads.

The issue is 95% guaranteed by the Japan Bank for International Cooperation.

The new Philippines Samurai did not show up on the radar screen of the New York-based Asian fixed income trader during Tuesday's session.

Hyundai non-deal roadshow

Elsewhere, the primary market remained quiet, although activity continues to bubble beneath the surface, according to a syndicate banker in New York.

A Hyundai Motor Co. (Baa3/BBB/) international non-deal roadshow will get underway on Tuesday for the Seoul, Korea-based automaker.

Barclays Capital, Bank of America Merrill Lynch, Citigroup and Goldman Sachs & Co. are the facilitators for investor meetings, which will take place in Singapore, Hong Kong, London, Boston, New York and Los Angeles.

The roadshow is scheduled to conclude on March 5.

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