Dubai Islamic issues notes; bombings, upcoming holiday lead to thin trading; Lat-Am mixed

By Christine Van Dusen

Atlanta, March 22 – Dubai Islamic Bank PJSC launched new notes on a Tuesday that saw thin trading as a result of the upcoming holiday and news of terrorist bombings in Brussels.

Also affecting the big picture were oil-related headlines.

Looking to Latin America, trading was scarce on Tuesday morning, with bonds heading a little bit lower, a New York-based trader said.

Brazil-based Petroleo Brasileiro SA (Petrobras) surprised the market by reporting a fourth-quarter loss, adding to the bleak picture in Brazil, which is struggling with a recession and turmoil in its government.

“[Brazil-based Vale SA] looks a bit softer, in sympathy of Petrobras’ earnings wallop,” he said. “I expect even more selling today in general.”

Brazil’s five-year credit default swaps spreads closed Tuesday at 363 basis points from 372 bps, while Mexico’s were unchanged at 158 bps, another trader said.

High-yield names from the region were mixed on the day, with PDVSA’s 2017s finishing in the 54.25 area and Venezuela’s 2027s down at 42.50 from 43.25.

In deal-related news, Islamic Corp. for the Development of the Private Sector (ICD) will set out on Wednesday for a roadshow to market an issue of dollar-denominated and benchmark-sized Islamic bonds, a market source said.

Argentina could issue notes, market sources said, with as much as $15 billion coming in early April.

And Kuwait’s Boubyan Ban could bring an issue in April as well.

© 2015 Prospect News.
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