China Development Bank prices bonds; oil dips, equities rise and lift EM; Ooredoo sees activity

By Christine Van Dusen

Atlanta, June 16 – China Development Bank Corp. sold notes during a challenging session for emerging markets assets, which started off with some softness on Thursday morning but strengthened after a midday reversal in the equity market.

Equities and crude oil parted ways during the day, with oil rolling over while equities moved higher, a trader said.

“This caused a lot of confusion in the EM credit space, but the market chose to focus on the positive tone in risk sentiment and bid up cash prices and tighten spreads,” he said.

Brazil’s five-year credit default swaps closed Thursday at 351 basis points, in from 354 bps, while Mexico’s moved lower to 176 bps from 180 bps, a New York-based trader said.

“Cash prices were mostly firm, aside from a small window when equities traded at intraday lows,” he said. “Latin American high yield finishes unchanged to higher on the session, with lower oil barely fazing Venezuela.”

Indeed, the sovereign’s 2027s were unchanged at 43.75 and PDVSA’s 2017s stuck to the 67.5 level.

From Asia, China-based Baidu Inc. underperformed in trading on Thursday morning, as did Alibaba, which saw its 2024 notes trade lower, a trader said.

The new issue of notes from Qatar’s Ooredoo QSC – $500 million of 3¾% notes due 2026 that priced Wednesday at 98.964 to yield mid-swaps plus 240 bps – traded Thursday at 99.125 bid, 99.25 offered.

© 2015 Prospect News.
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