Primary sees Frasers Centrepoint; oil prices undulate, EM performs; Lat-Am tightens

By Christine Van Dusen

Atlanta, April 14 – Singapore’s Frasers Centrepoint Ltd. was among the issuers to sell notes on Thursday as oil prices undulated ahead of this Sunday’s oil-producer talks in Doha.

“Global market sentiment remains buoyed, providing a favorable backdrop also for [emerging markets] assets,” a London-based strategist said on Thursday morning. “The strong market performance has also lured new issuers to tap international debt markets.”

Meanwhile, South Africa remained under intense scrutiny by investors and rating agencies, he said.

He noted that the sovereign could be downgraded to junk in June or December, “given the mixed messages on the position of finance minister.”

Also on Thursday, Latin American bonds moved tighter and higher yet again, though volumes were low, a New York-based trader said.

Brazil’s five-year credit default swaps spreads closed at 338 basis points from 340 bps after trading as wide as 346 bps earlier on Thursday.

Mexico’s CDS finished at 157 bps from 158 bps, he said.

“Cash prices continue to gap higher with little volume as dealers seem to be chasing this market and real money continues to demand paper,” he said. “Lat-Am high-yield finishes the day with Argentina jumping whereas Venezuela was mostly unchanged.”

Argentina’s Bonar 2024s closed at 111.50 from 110, while Venezuela’s 2027s closed at 40.25 from 40.75.

PDVSA’s 2017s finished at 54.25 from 54.40.

© 2015 Prospect News.
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