Morning Commentary: Nogaholding, Mubadala doing well; Egypt, Oman spreads tighten

By Rebecca Melvin

New York, Nov. 2 – Emerging markets debt felt a little stronger in the early going on Friday although activity was muted heading into the weekend.

The new deals for the Middle East and Africa region, new tranches of Bahrain’s Oil & Gas Holding Co. BSC (Nogaholding) and Abu Dhabi’s Mubadala Development Co. PJSC’s 4½% 10-year notes, “have done fairly well,” a London-based trader said.

The two issuers brought $1.8 billion of new notes this week.

In the existing sphere, Egypt and Oman spreads were about 5 basis points to 10 bps tighter on Friday amid a relief rally in the early going when financial markets were uniformly positive. Although EM was giving back a little bit as the session’s close drew closer.

U.S. Treasuries sold off a bit and high-beta names did a bit better, but “it’s deathly quiet, really,” the trader said.

In the primary market, it is expected that the Republic of Kazakhstan will pull the trigger on its planned euro-denominated 10-year notes on Monday or Tuesday.

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