CSI Properties prints notes; ‘whippy’ trading of EM; Brazil outperforms; ADB advances deal

By Christine Van Dusen

Atlanta, Aug. 2 – China’s CSI Properties Ltd. sold notes on Tuesday as trading of emerging markets assets was “whippy” and some cash prices improved.

“EM credit sees a whippy trading session, with different issuers diverging in big ways,” a New York-based trader said. “Brazil continues to outperform and has five-year credit default swaps unchanged at 294 basis points. Brazil cash prices surged late in the day, with offers being ripped off the screens.”

Brazil’s 2026s closed at 111.30 from 110.70, the 2025s closed at 99.60 from 99.10, and the 2047s ended at 97.10 from a low of 95.75.

Some sellers emerged but the market ended higher on Wednesday, he said.

Mexico’s CDS closed at 158 bps from 155 bps, he said.

“Cash bonds felt particularly heavy all day,” he said. “Mexican sovereign [bonds] were not alone in this weakness, as [Petroleos Mexicanos SAB de CV] was also very well offered.”

Looking ahead, “it remains very busy outside and in [emerging markets],” a London-based analyst said. “Outside, we are awaiting the nonfarm payrolls figures for July this Friday while the Bank of Europe will announce its interest rate decision on Thursday.”

In deal-related news, African Development Bank is looking to tap its dollar-denominated 1% notes due May 15, 2019, according to a company filing.

© 2015 Prospect News.
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