Primary hosts Pemex, Koc, Buenos Aires, Cemex, ADB, Israel; Lat-Am tighter; CBQ eyes deal

By Christine Van Dusen

Atlanta, March 9 – Mexico’s Petroleos Mexicanos SAB de CV (Pemex), Turkey’s Koc Holding AS, Buenos Aires, Philippines’ Asian Development Bank, Mexico’s Cemex SAB de CV and Israel sold notes on Wednesday as emerging markets investors continued to embrace risk and some spreads tightened.

Still, “client buying was not as fervent as last week and early this week,” a New York-based trader said. “Performance is mostly scattered between unchanged and slightly higher, as we have recouped yesterday’s move lower in some credits that did so.”

This was particularly true for Latin America, though Brazil-based Braskem SA’s “recent glamour” is on the wane, he said.

“I think some would-be Braskem money has moved into [Gerdau SA],” he said. “The market and clients are definitely gaining a stronger comfort level with the credit at current yields.”

Into the close, most names from the region moved tighter and higher, another trader said.

Brazil’s five-year credit default swaps spreads closed at 402 basis points from 408 bps, while Mexico’s moved to 402 bps from 408 bps.

High yield names from Latin America were mixed on the day, with Venezuela bouncing after an economic policy announcement and Argentina staying mostly unchanged.

In other news, Commercial Bank of Qatar QSC will seek approval from shareholders next week for up to $3.5 billion of bonds, a market source said.

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