New deals from CAF, Tocumen, Dominicana; Vale’s bonds fall, Brazil’s outperform; Qatar dips

By Christine Van Dusen

Atlanta, May 4 – Venezuela’s Corporacion Andina de Fomento (CAF), Panama’s Aeropuerto Internacional de Tocumen SA (Tocumen International Airport) and Dominican Republic-focused AES Andres Dominicana SPV were among the issuers to print notes on a challenging Wednesday for emerging markets assets.

“Global risk assets finish the day on weak footing after numerous attempts to pare losses,” a New York-based trader said. “We do close well off of our lows and wides of the session.”

Brazil managed to outperform, with its five-year credit default swaps spreads closing at 343 basis points from 345 bps, but Mexico’s moved to 171 bps from 167 bps.

“Cash prices outperform CDS levels, with some bonds actually higher on the day, as the divide between CDS spreads and bond prices continues to widen,” he said. “Lat-Am high yield finishes mixed on the session.”

Corporate issuers from Latin America were whipped around during the session, with Brazil-based Vale SA opening three points lower falling on Tuesday on the news that Brazilian prosecutors had filed a civil suit against the company, another trader said.

Also impacting the picture on Wednesday was the further decline in oil prices, he said.

Looking to the Middle East, it was an “active and tricky day,” a London-based trader said.

Long-dated Qatar bonds dipped two points on whispers about a possible deal, he said.

© 2015 Prospect News.
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