Oman, Cemex, Ecopetrol, Fibra Uno tap market; oil prices lift sentiment; calendar builds

By Christine Van Dusen

Atlanta, June 8 – Oman, Mexico’s Cemex SAB de CV, Colombia's Ecopetrol SA and Mexico’s Fibra Uno sold notes on Wednesday as emerging markets assets remained resilient, even after the World Bank cut its projections for global growth and China released economic data that showed a decline in exports.

“Any slight disappointment, if at all, is overruled by oil prices climbing further above $50 a barrel and the diminishing prospect of a U.S. rate hike in the foreseeable future,” a London-based strategist said.

In trading on Wednesday, Latin American bonds fared well but finished off their highs and tights as sellers emerged in the late afternoon, a New York-based trader said.

Brazil's five-year credit default swaps spreads closed at 326 basis points from 328 bps after trading as low as 320 bps, and Mexico's were unchanged at 156 bps after trading as tight as 151 bps.

“Cash prices get a boost from the continued United States Treasury rally, as well as modest spread-tightening,” he said. “The market still seems to be chasing paper.”

High-yield names finished mixed on the day, with PDVSA's 2017s closing at 69.50 from 69.75 and Venezuela's 2027s up at 45.50 from 45.

Argentina's Bonar 2024s were mostly unchanged at 113.50 and the 2026s were down at 105.75 from 106.50, he said.

© 2015 Prospect News.
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