CSI Properties, Inbrands, Ghana advance deals; Lat-Am spreads widen, but bonds well bid

By Christine Van Dusen

Atlanta, Aug. 1 – China’s CSI Properties Ltd., Brazil’s Inbrands SA and Ghana advanced deals on Monday as lower oil prices and Treasury moves led to some wider spreads, though emerging markets assets remained mostly firm overall.

“Oil is slipping below $40, equities are at intraday lows and Treasuries are not seeing a big bounce from the lows earlier, but EM credit is surprisingly resilient,” a trader said.

The long end of Brazil’s curve, though, did take a hit after performing earlier in the day. The sovereign’s 2047s were spotted down at 96¾ from 97.15 at the open, he said.

By the end of the session, credit default swaps spreads from Latin American were mostly wider while cash bonds were very well bid, another trader said.

Brazil’s five-year CDS closed at 294 bps from 291, and Mexico’s moved to 155 bps from 151 bps.

“Cash prices were well bid throughout the day and finished higher despite wider CDS spreads and lower Treasuries,” he said. “Latin American high yield finishes largely unchanged on the session despite oil weakness.”

Venezuela’s 2027s closed at 48.25 from 48.50, and Argentina’s Bonar 2024s were unchanged at 116.125, while the 2026s moved up to 108.50 from 108.25.

“Flows on the lighter side today, despite strength in cash prices, with two-way scrappy inquiry for the most part,” he said.

Looking to Turkey, trading was “subdued” on Monday, a London-based trader said.

“A few trades going through the Street,” he said. “Flow is on the light side, two-way, but we are around 10 bps tighter in the sovereign, regaining some of Friday’s underperformance.”

Turkey in focus

Turkey’s sovereign curve tried to “steepen up, with a bid returning in the belly, the 2026s to 2021s,” the trader said. “Corporates are still sought after, even at the tight valuations, and [financial companies are] performing slightly better.”

Overall, for EM, “cash prices are under a bit of pressure with Treasury weakness, but they still look to be in Friday’s context,” another trader said. “Few trades thus far, as summer Monday mornings tend to be on the quieter side.”

CSI Properties plans issuance

In deal-related news, China’s CSI Properties is planning to issue dollar-denominated notes due in five years, a market source said.

The proceeds will be used to refinance debt.

Other details were not immediately available on Monday.

CSI is an investment holding company based in Hong Kong.

Inbrands could print bonds

Brazil’s Inbrands is looking to issue bonds, with pricing likely to come later this month, a market source said.

Other details were not immediately available on Monday.

Inbrands is a Sao Paulo-based retailing company.

Ghana sets size

Ghana set the size at a maximum of $1 billion for its upcoming notes issue, which is expected to price by next week, a market source said.

The notes are being issued concurrent with a tender offer.

BofA Merrill Lynch, Citigroup and Standard Chartered are the bookrunners for the Rule 144A and Regulation S deal.

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