Primary market hosts Persero; whiplash trading for LatAm corporates; Russia in focus

By Christine Van Dusen

Atlanta, Sept. 26 – PT Pelabuhan Indonesia III (Persero) sold notes on Friday as investors kept an eye on tension between Ukraine and Russia.

Ukraine officials were investigating ex-minister Yuriy Kolobov for his role in organizing a bond sale that would help bail out Russia. Russian news sources on Friday were reporting that Russia may be able to demand that Ukraine make an early repayment of the eurobond in November.

“The sovereign curve sold off as headlines came out of a criminal case having been opened against ex-finance minister Kolobov regarding last December’s sale of a $3 billion bond to Russia,” said Svitlana Rusakova of Dragon Capital. “This made people worried about the possible ramifications of Ukraine trying to avoid repaying the bond.”

Looking to Latin America, sovereign spreads continued to widen at the end of the week amid balanced flows, a New York-based trader said.

Dollar prices recovered slightly and Venezuela got a boost early on Friday but lost some gains, with the 2027s moving from 74.40 to 74.15, he said.

Corporate bonds from Latin America opened “meekly and weakly” on Friday and then saw a “feeding frenzy” into the close, he said.

Mexico-based Cemex SAB de CV moved 1½ points lower with no support before moving a point higher in a matter of minutes, he said.

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