HNA, NTPC, Adani see secondary action; Ukraine, Russia conflict remains; Lat-Am prices ‘pop’

By Christine Van Dusen

Atlanta, Aug. 16 – Recent new issues from Asia saw some activity in trading on Tuesday as Latin American bond prices rose and investors continued to watch tensions grow between Ukraine and Russia.

From Ukraine, trading of sovereign bonds has been “rather dull” so far this week, “marked by wide bid-ask levels,” said Svitlana Rusakova of Dragon Capital.

“Banks were slightly lower, with some offers around, while corporates were better bid,” she said.

This came not only as the crisis over Crimea continued between Ukraine and Russia, but also as the latter sovereign released economic data that showed its recovery was slowing down, according to a report from Schildershoven Finance BV.

Looking to Latin America, credit continued to be well-bid on Tuesday, a New York-based trader said.

“Cash prices firm despite unchanged spreads,” he said.

Brazil’s five-year credit default swaps spreads closed at 254 basis points from 253 bps after trading as tight as 252 bps, the New York trader said. Mexico’s moved to 133 bps from 134 bps.

“End of day sees a big pop in cash prices, with seemingly lofty offers lifted despite Treasury weakness,” he said. “Lat-Am high yield finishes firmer on the day.”

Indeed, PDVSA’s 2017s closed at 74 from 73.50, Venezuela’s 2027s moved to 47.50 from 47, and Argentina’s Bonar 2024s were up at 119 from 118.40. The latter sovereign’s 2026s finished at 113.25 from 112.60.

© 2015 Prospect News.
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