New deal from Fantasia; Russia, Turkey in focus; Chinese yields climbed; Qatar banks eyed

By Christine Van Dusen

Atlanta, Dec. 20 – China-based Fantasia Holdings Group Co. Ltd. priced a bond tap on Tuesday as investors watched Russia and Turkey – following the shooting in Turkey of Russia’s ambassador to Syria – while they awaited results of a meeting on the Syrian conflict.

“Yesterday was overshadowed by the assassination of the Russian ambassador to Turkey, the suspected terrorist attack in Berlin and a shooting at an Islamic center in Zurich,” a London-based analyst said. “The incident in Turkey saw initial market nervousness late yesterday, not least because the attack happened in a time of recovering Russia and Turkey relations.”

“The attack on Russian ambassador in Turkey and a probable terrorist attack in Berlin may trigger a risk-off mood among global investors,” according to a report from Schildershoven Finance BV. “The correction should not be too deep and too long.”

Bonds look “overpriced, as spreads to the base curve have declined since Donald Trump’s win,” the report said. “Downside risk is prevailing in the market at the moment.”

Looking to Asia, yields on China’s sovereign debt due November 2026 climbed 10 basis points to 3.5%, the highest since August 2015, Schildershoven said.

In other news from emerging markets, market sources were whispering that Qatar – as well as Bahrain, Saudi Arabia, Oman, Kuwait and Abu Dhabi – could bring new bonds in 2017.

© 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.