Investors focus on oil producers’ meeting, Brazil impeachment vote; big Argentina deal on deck

By Christine Van Dusen

Atlanta, April 15 – Price action for many emerging markets bonds was erratic on Friday, as oil prices continued their decline ahead of the meeting of oil producers in Doha and the impeachment vote in Brazil, both set for Sunday.

“Lots of headline risk going into the weekend, with the Doha oil meeting and Brazil impeachment vote,” a trader said. “These events should serve up some volume early Monday as we get to our desks next week.”

On Friday, some bonds from Latin America, in particular, pulled back in trading “as dealers play it a little cautiously now, in front of Sunday’s [oil] meeting,” a New York-based trader said.

Meanwhile, long-dated bonds from the Middle East “caught the broader EM bid,” a London-based trader said, with names like Bahrain and DP World trading very well.

The time appears to be ripe for some issuers to bring new deals to the market, a London-based trader said.

“Commodities have rallied, China concerns linger but have subsided, and spreads have rallied since early February. Why would there not be supply in the coming weeks?” he said. “This is the window, this is the time.”

Argentina’s Bonar 2024s were unchanged at 111.50 on the news that the sovereign mandated Deutsche Bank, HSBC, JPMorgan and Banco Santander as global coordinators for up to $15 billion of bonds.

This would be Argentina’s first bond issue in about 15 years.

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