Oil prices boost EM; Ukraine, Russia crisis continues; Lat-Am spreads narrow; NBAD plans notes

By Christine Van Dusen

Atlanta, Aug. 19 – Oil prices rose on Friday, even after reports that Saudi Arabia hit a seasonal export record, during a positive but low-liquidity session for emerging markets assets.

Taking at look at Ukraine, the crisis with Russia continued to deteriorate into the end of the week after the president said the military could consider imposing a draft if hostilities worsen.

“The Russian-Ukrainian raised tensions negatively affect investor mood,” the report said. “However, the reaction is still quite moderate.”

Overall, volumes and liquidity remained poor for emerging markets assets, as is typical for August, a trader said.

“It’s only really Turkey that has drifted wider,” he said.

In trading from Latin America, spreads drifted a bit wider and cash prices dipped slightly, a New York-based trader said.

Five-year credit default swaps spreads for Brazil closed at 252 basis points from 250 bps, while Mexico’s moved to 132 bps from 130 bps, he said.

“Cash prices feel a bit heavy as rates back up a bit and equities slide,” he said. “Lat-Am high yield is also softer on the day.”

In deal-related news, National Bank of Abu Dhabi will set out on Aug. 22 for a roadshow to market a dollar-denominated and benchmark-sized issue of green bonds, a market source said.

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