Argentina prices massive deal; Chexim brings deal; Lat-Am spreads tighten; buyers for Turkey

By Christine Van Dusen

Atlanta, April 19 – Argentina returned to the market on Tuesday with a whopping $16.5 billion deal during a busy trading session that also saw Export-Import Bank of China (Chexim) sell notes.

“The lack of an accord on a production freeze from the Doha meetings has failed to spark a major sell-off in commodity prices and in EM assets so far,” a London-based strategist said.

Latin American bonds saw their spreads tighten again into the close on Tuesday, with Brazil’s five-year credit default swaps spreads moving to 338 basis points from 340 bps after trading as tight as 332 bps earlier in the day, a New York-based trader said.

Mexico’s CDS finished at 153 bps from 157 bps.

Buyers emerged for Turkish bonds as “worries over tomorrow’s central bank meeting subside,” a trader said. “Although we have supply on the wire, it’s not covering a broad enough spectrum to satisfy investor demands.”

Most Turkish bonds were about 10 basis points tighter on Tuesday morning.

“The market continues to tear higher and platforms are overwhelmed with [offers wanted in competition] in every type of risk there is,” a trader said. “Turkey credit default swaps last traded at 230 bps and Russia at 252 bps, levels not seen since the mid-year rally in 2015.”

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