EM sees positive tone; Turkey outperforms; Kazahkstan tightens; Indonesia brings deals

By Rebecca Melvin

New York, Dec. 4 – Emerging market credit borrowed a positive tone from the broader markets on Monday, with outperformance in Turkey’s sovereign and bank debt and notable spread tightening among a select group of sovereigns including Kazakhstan, Russia and Poland.

In general, improved spreads were offsetting a selloff in rates, one market source said regarding emerging market credit.

A second source said, “Today’s session was far more constructive for EM with global markets taking some support from progress with tax reform and some good strength coming into the lira following the inflation print.”

No new issues were announced for the CEEMEA region however, one syndicate source said.

But in Asia, Indonesia announced plans to price three tranches of dollar-denominated senior notes (expected ratings Baa3//BBB-/BBB-) for Monday’s business.

Citigroup, Deutsche Bank, ANZ and Goldman Sachs were marketing the notes that were guided to 3.05% area for the five-year notes, 3.6% area for the 10-year notes and 4.45% area yield for the 30-year notes.

In Latin America, a handful of deals were roadshowing with pricing subject to market conditions anticipated on Wednesday or Thursday. These include deals from Tecpetrol SA, Infraestructura Energetica Nova SAB de CV, GOL Linhas Aereas Inteligentes SA and Banco BTG Pactual.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.