OTP Mortgage prices notes; EM bonds widen on FOMC; roadshows ahead for Cencosud, Baosteel

By Christine Van Dusen

Atlanta, Jan. 29 – Hungary’s OTP Mortgage Bank Ltd. sold notes on Thursday as investors digested the latest statement from the Federal Open Market Committee and as euro-denominated paper saw significant demand ahead of quantitative easing in Europe.

U.S. Treasuries rallied after the FOMC said it expected to see declines in inflation and that the Federal Reserve Bank would be patient in raising rates, a London-based analyst said.

“Most bond spreads are opening wider here in [EM] this morning as a result,” he said.

Russia’s 2030s opened 10 basis points wider while its credit default swaps spreads moved out 5 bps while the European Union considers capital market restrictions and extending some sanctions, he said.

And Turkey’s credit default swaps were 2 bps wider on Thursday.

Meanwhile, investment-grade names from the Middle East remained “solid, especially Abu Dhabi, Qatar and Saudi Electricity Co.,” a trader said. “High-yield names are without much support at all. As such, the likes of Kuwait Energy Co. and Dar al-Arkan Holdings have seen selling pressure.”

Kuwait Energy’s 2016s were 16 points off their high, he said.

“They had a rocky start, being typically poorly placed, and traded from par down to 98.75 and today closed at 99.90 bid, par offered with what feels like plenty of paper near par for sale,” he said.

In deal-related news, Chile’s Cencosud SA and China’s Baosteel Resources International Co. Ltd. set roadshows for upcoming bond issues.

© 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.