Market remains positive; Cemex deal upsized, prices below talk; Venezuela, PDVSA drift

By Rebecca Melvin

New York, Nov. 28 – Emerging credit markets remained positive on Tuesday as investors digested several key news events, including a confirmation hearing of the Federal Reserve chair nominee Jerome Powell and passage of the U.S. tax bill out of committee in the United States and another test of a North Korean missile that appeared stronger than previous missiles tested with a potential range of more than 8,000 miles, according to reports.

Market tone was positive, a market source said early in the day.

In market news, Mexico’s Cemex SAB de CV launched and priced an upsized €650 million of notes, and investors were also watching for word on the planned Alibaba Group Holding Ltd. tranches, for which investor calls were wrapping up on Tuesday.

The initial deal Cemex announced early Tuesday was for €400 million of the seven-year non-call three notes. After upsizing, the notes ultimately priced with a 2¾% coupon, which was tightened from initial talk in the 3¼% area.

Meanwhile, Alibaba was selling three tranches of Securities and Exchange Commission-registered notes.

Elsewhere, Brazilian bonds remained strong, which has been the case in recent sessions, and Venezuela and Petroleos de Venezuela SA bonds were drifting around in the low- to mid-20 range for most issues.

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