Russia’s O1 prices notes; Turkey sees selloff; eyes on oil; Pakistan, EuroChem prep deals

By Christine Van Dusen

Atlanta, Sept. 26 – Russia’s O1 Properties Finance plc priced new notes on Monday as investors sold off bonds from Turkey, following the sovereign’s downgrade by Moody’s Investors Service to Ba1.

Spreads started off Monday’s session wider, with five-year credit default swaps spreads moving out 25 basis points to 270 bps, but “we see a more pronounced widening as likely to be temporary,” a London-based analyst said.

Indeed, as the morning went on, CDS moved back to 264 bps while sovereign cash was 25 bps wider, he said.

The sell-off has certainly been less dramatic than the one seen after the coup attempt, a trader said.

Also on Monday, investors were keeping an eye on the oil markets.

Some Latin American bonds experienced “considerable weakness” in trading on Monday, a New York-based trader said, which was particularly surprising for Mexican banks, “given their usual resilience during weak market stretches.”

In trading, it was a “patchy day, with pockets of activity” for many Middle Eastern names, a London-based trader said.

In deal-related news, Pakistan will set out next week for a roadshow to market a $750 million-minimum issue of Islamic bonds, a market source said.

Russia’s EuroChem Global Investments Ltd. is planning to issue new loan participation notes in a Rule 144A and Regulation S deal, alongside a tender offer, according to a company announcement.

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