Israel, Fibria sell notes; Turkey underperforms; Argentina taps banks; Egypt readies deal

By Christine Van Dusen

Atlanta, Jan. 11 – Israel and Brazil’s Fibria Celulose SA sold notes on Wednesday as investors kept an eye on the selection of President-elect Donald Trump’s cabinet amid concerns about ties to Russia.

In trading, Turkey continued to underperform on Wednesday amid foreign currency liquidity concerns and the central bank’s decision to release $1.5 billion into the financial system.

Also from Turkey, the parliament is debating amendments to its constitution.

All of this is “causing Turkish credit to underperform the rest of the [emerging markets] space once more, with Turkey sovereign credit default swaps 7 basis points to 8 bps wider and cash circa 8 bps wider,” a London-based analyst said. “Other markets are rather well-behaved.”

Notes from Poland were trading about 3 bps tighter on Wednesday after the central bank decided to keep its reference rate unchanged.

In deal-related news, Argentina picked banks for its upcoming issue of up to $10 billion of notes, a market source said.

The deal, which could total between $5 billion and $10 billion, is expected to come to the market before Jan. 20.

And Egypt set the size at $2 billion to $2.5 billion for an issue of eurobonds that is likely to come to the market in February, a market source said.

The sovereign will set out on Jan. 17 for a roadshow.

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