EM credit notably strong; Lebanon spreads tighten; Petrobras gains; Rio Negro eyes notes

By Rebecca Melvin

New York, Nov. 22 – Emerging credit markets remained notably strong early Wednesday ahead of what was expected to be a quieter tone on Thursday and Friday given the U.S. Thanksgiving holiday.

There was no clear driver for the early strength, in which even Turkey credit improved following a spate of pronounced weakness in recent sessions, strategist Trieu Pham of MUFG Securities wrote in a note.

Lebanon was also notably stronger on Wednesday with spreads tighter across the whole curve but notably tighter in the Lebanon 6% notes due 2019, which were indicated 98¾ bid, 99¾ offered at the market close in London, with the spread tighter by 46 basis points, according to a market source.

From Latin America, Brazil’s Petroleo Brasileiro SA 6¾% notes due 2041 moved higher in trade on Wednesday, moving above 102 in active dealings from about 100.875 on Tuesday.

Joining Cemig Geracao e Transmissao SA on the primary calendar on Wednesday is a deal for Argentina’s province of Rio Negro.

Rio Negro named BofA Merrill Lynch and BBVA Securities to arrange meetings with fixed-income investors pertaining to a potential $300 million offering of seven-year notes (expected rating; /B/), according to a market source on Wednesday.

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