Oil India plans roadshow for week ahead; Asian markets light; Petra Diamonds markets notes

By Colin Hanner

Chicago, April 3 – Volumes were light and traded tight in Asian markets on Monday, a market source said, especially so with an upcoming holiday mid-week.

“[It is a] light start with holidays several regions,” a market source said. “[Investment-grade] spreads [are] holding firm as we begin the new quarter ... expect some rebalancing in the following weeks.

Asian secondary tight

In the secondary market, Asian sovereign bonds were unchanged while spreads were 1 to 2 basis points wider, a market source said, while corporate bonds spreads were unchanged to 1 bp tighter.

Industrial and Commercial Bank of China’s ICBCIL Finance Co. Ltd.’s three-notes were trading flat at 177 bid, 174 offered, while the five-year notes were quoted at 147 bid, 144 offered, a market source said.

Oil India roadshow expected

In the primary space, Oil India Ltd. announced a dollar-dominated roadshow to take place later in the week, a market source said.

Early Monday, Fitch Ratings assigned Oil India’s proposed senior unsecured U.S. dollar notes with an expected BBB- rating.

Petra Diamonds markets notes

Petra Diamonds continues to roadshow its $600 million five-year second-lien notes offer, which has generated followings among both emerging markets and high-yield accounts, according to a source close to the deal.

The offering has been running an emerging markets-style non-deal roadshow among fixed-income investors.

The two-team roadshow has been underway since late last week.

It was in New York on Monday and will be in Boston, the West Coast and Canada on Tuesday, and the deal is set to price on Wednesday.

There is no whisper yet, the source said.

Sovereign spreads wider

“The damage has been even bigger in Colombia,” a market source said on Monday. “Spreads are us much as 20 wider from last week’s tights.”

Republic of Columbia’s 7 3/8% notes due 2019 were quoted 110.20 bid, 110.45 offered.

Its 4 3/8% notes due 2021 were quoted at 105.85 bid, 106.35 offered, and the 2 5/8% notes due 2023 were quoted at 96¼ bid, 96¾ offered.

In Mexico, the sentiment around spreads was similar.

“[There was] relentless pressure all over the curve early today, but prices are stabilizing now as dealers are running out of bonds to sell,” a market source said. “It also looks like shorts are unwilling to put any more pressure at these much wider spreads.”

The source said the recent Treasury rally left Mexican spreads 10 to 15 bps wider than last Wednesday’s tights, even as credit default swaps and the peso have continued to trade well.

“[There is] no real fundamental reason to explain this set back,” the market source said.

Mexico’s 5.95% notes due 2019 were bid at 107.70, 108 offered.

Its 5 1/8% notes due 2019 were quoted at 108.15 bid, 108.55 offered.

And its 3½% notes due 2021 were quoted at 103.60 bid, 103.10 offered.

PDVSA higher

Petroleos de Venezuela SA bonds were higher on the day, a market source said.

Its 5¼% notes due 2018 were quoted at 95½ bid, 96½ offered, a ½-point gain from Friday.

The 8½% notes due 2017 were quoted at 84 bid, 85 offered, a ¼-point gain.

The 8½% notes due 2020 were unchanged with a 74 bid, 75 offered.

And its 9% notes due 2021 were quoted 49 bid, 50 offered, a ½-point uptick.

Paul A. Harris contributed to this review.

© 2015 Prospect News.
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