Vakifbank, International Container sell notes; blizzard watch, oil prices affect sentiment

By Christine Van Dusen

Atlanta, Jan. 26 – Turkey’s Turkiye Vakiflar Bankasi TAO (Vakifbank) and Philippines-based International Container Terminal Services Inc. sold notes on Monday as oil prices declined, violence increased in Ukraine and news reports warned that a huge blizzard would soon hit the northeastern United States.

Also on Monday, emerging markets investors took the election results in Greece in stride.

“The market reaction [to the Greek election] has been relatively contained so far; the result was largely anticipated,” a London-based analyst said. “U.S. Treasuries gave up some gains after a brief rally, first thing.”

Ukraine and Russia remained under pressure amid rocket attacks in Mariupol and the U.S weighed further sanctions against the latter sovereign.

In response to this and lower oil prices, Russian credit default swaps spreads widened 35 basis points on Monday morning while oil and gas bonds moved 20 bps to 25 bps wider, he said.

Later in the session, Russian bonds came under further pressure on the news that Standard & Poor’s had downgraded the Russian Federation’s ratings to junk.

In deal-related news on Monday, Tunisia set talk in the 6% area for its upcoming issue of about $750 million of notes due in 10 years, a market source said.

Turkey’s GarantiBank International NV has applied to issue up to $6 billion of bonds, a market source said.

© 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.