Morning Commentary: Oil prices decline again; Logan Property dips; Petrobras in focus

By Christine Van Dusen

Atlanta, Jan. 2 – Oil prices slid and China’s Logan Property Holdings Co. Ltd. saw its 2017 notes tick lower on a mostly quiet Friday for emerging markets assets.

Logan Property’s 9¾% notes due Dec. 8, 2017 – which priced at par to yield 9¾% – were quoted Friday morning at 97¾ offered, a London-based trader said.

Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan and VTB Capital were the bookrunners for the deal.

Meanwhile, investors in Latin American debt continued to grapple with negative news about Brazil-based Petroleo Brasiliero, which suffered as Brent crude prices dropped to new lows and a corruption scandal remained in the news.

Brazil president Dilma Rousseff has said the country will make an anti-corruption push. And next month the Supreme Court is expected to name politicians who received bribes.

So far this week, the news has caused “some contagion effect to sovereign prices,” a New York-based trader said. Brazil’s 2025 notes have been seen at 100.55, down from 101.

“[A] quiet, holiday-shortened week still sees some volume in Latin America,” he said.

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