Ugly session for Latin America; liquidity poor throughout EM; Rosneft could print notes

By Christine Van Dusen

Atlanta, Dec. 10 – Latin American corporate bonds were weak and illiquid and sellers outpaced buyers on one of the “ugliest” days for notes from the region, a New York-based trader said.

Assets from other emerging markets also faced challenges on Wednesday, a London-based analyst said.

Bonds from Russia remained weak on Wednesday as the market awaited talks with Ukraine and hoped for a more lasting ceasefire. There was only “sporadic firing” on Tuesday, the analyst said.

In other news from Russia, mining company Mechel has agreed to a debt restructuring plan with Gazprombank and is continuing to talk with other banks.

“Liquidity is still largely non-existent in the complex, but spreads are generally unchanged this morning,” the analyst said.

Also from Russia, Moscow’s OAO Rosneft is considering an issue of RUB 800 billion of bonds, a market source said.

Taking a closer look at Latin America, credits from Chile were weaker and wider but moved down only slightly on Wednesday, the New York trader said.

Bonds from Peru were mostly quiet, and those that did trade, traded well. But liquidity remained a challenge, he said.

Bonds from Mexico, particularly its high-grade names, were under pressure, he said.

And Ecopetrol bonds dipped as a result of oil prices, he said.

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