Emerging markets assets’ performance ‘very impressive’; Oman does deal; Lat-Am mostly stronger

By Christine Van Dusen

Atlanta, June 29 – Oman sold notes on a strong Wednesday for emerging markets assets, with spreads and recent new issues tightening from reoffer as investors began to adjust to the idea of the United Kingdom leaving the European Union.

“With an official request to leave unlikely to happen before Cameron is stepping down – likely in October – the uncertainty will persist and, for now, it seems that [emerging markets] investors can comfortably live with it,” a London-based analyst said. “This morning, we are seeing [emerging markets] credit tighten a notch further, led by stock markets in the green, higher oil prices, stable U.S. rates and a weaker U.S. dollar.”

Latin American bonds opened stronger on Wednesday, a New York-based trader said, with underperformers from Tuesday playing some catch-up.

Liquid curves, like those from Ecopetrol SA and Cemex SAB de CV pushed higher, he said.

“The negative headlines regarding Cemex were taken by the market with a minimum grain of salt, as it becomes all about yield-searching in fixed assets,” he said, referring to the company’s initial public offering for its Philippines subsidiary. “Clients so far seem to be better buyers.”

Later in the day, bonds from the region were “still humming along,” another New York trader said. “The push higher on the open has leveled off, but that could be just a pause, as accounts recently on the sideline realize they [need to get] involved, to some degree.”

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