Fear of ‘Brexit’ doesn’t harm EM; Cemex climbs; Peru hosts investor call; Cheung Kong on deck

By Christine Van Dusen

Atlanta, Feb. 22 – Emerging markets assets started the week with an encouraging tone and managed to stay mostly firm, even as investors worried that Britain was increasingly likely to leave the European Union.

“Monday was a very strong day in emerging markets credit, as the risk trade was on once again,” a trader said. “Benchmark sovereigns and quasi-sovereigns were up roughly one point to 1¼ points during the day as metals and energy moved higher on an improvement in Chinese demand.”

Mexico-based Cemex SAB de CV, for one, moved higher on Monday after steadily moving up during the previous week, a New York-based trader said.

But Petroleos Mexicanos SAB de CV was “surprisingly weaker,” another trader said.

Otherwise, there was “very little activity and prices” for names from Mexico in the morning, he said.

Later in the day, Mexico’s cash bonds were “on fire,” with the belly of the curve the outperformer, another trader said.

For Brazil bonds, there were a few offers and bids improved, another trader said, but not by as much as was expected.

In deal-related news, Peru held an investor call on Monday morning to discuss the possibility of issuing notes, a market source said.

China’s Cheung Kong (Holdings) Ltd., via OVPH Ltd., is looking to issue up to $1 billion of perpetual notes, according to a company filing.

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