Investors await U.S. election, ponder outcomes; Turkey narrows; Saudi Arabia 10-years bid

By Christine Van Dusen

Atlanta, Nov. 7 – Emerging markets debt saw some trading activity on a Monday that saw investors awaiting election day in the United States – and pondering the effect it will have on the asset class.

“We saw improving market sentiment over the weekend on the FBI’s decision to clear Hillary Clinton from any potential criminal charges,” a London-based analyst said. “That said, flow is likely more muted ahead of tomorrow’s elections, which pose somewhat of an uncertain outcome.”

A Clinton win “could boost EM asset prices and tighten credit spreads further, which would outweigh the U.S. dollar strength in the short term,” he said. “A Trump win would raise uncertainties, given his rhetoric on global trade and immigration.”

If Clinton wins, emerging markets debt – particularly from Turkey – could see a relief rally, he said.

In trading from the Middle East, the new, $17.5-billion megadeal from Saudi Arabia saw some pockets of activity on Monday, a trader said.

“The 10-years were bid at the expense of the 30-year again,” the trader said.

Oman saw buyers and tightened 6 basis points to 8 bps on the week while the new issue of notes from Kuwait-based Equate Petrochemical Co. KSCC – $2.25 billion of senior notes due in 2022 and 2026 – received some attention, the trader said.

Notes from Qatar tightened, with the 2046s moving in by as much as 9 bps on Monday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.