Primary sees Videsh, Pacific International, Noble Group, Kookmin; Bahrain, Kuwait suffer

By Christine Van Dusen

Atlanta, July 7 – India’s ONGC Videsh Ltd., Singapore’s Pacific International Lines, China’s Noble Group Ltd. and South Korea’s KB Kookmin Bank sold notes on a Monday that saw patchy liquidity for emerging markets assets as the summertime mood began to set in.

“Real summery feel in the markets ... with an air of thinness prevailing,” a London-based trader said. “The Tour De France rolling through London also took some attention away from the screens later in the day.”

Spreads fared well, tightening along with rates, he said, and trading was active for perpetual bonds from the Middle East.

“Still, a few names have been beaten up lately on the back of the ISIS developments,” he said. “The biggest losers have been Bahrain and Kuwait names.”

Bonds from Central and emerging Europe opened somewhat firmer on Monday as the conflict in Ukraine appeared to be easing, a London-based analyst said.

“The tide does appear to be turning,” she said. “The rebels asked for Russian assistance over the weekend, but there was no response from Moscow, implying their concerns over possible sanctions. There remains the risk, however, that the deaths of citizens in the fighting could still push Russia to become involved.”

In response, the sovereign’s 2030s underperformed the 2019s, she said.

In deal-related news, China’s Huarong Finance Co. Ltd. and China National Gold Group Corp. were on roadshows, and Bahrain was looking to issue euro-denominated notes.

© 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.