Slovakia, MAF, Oman, Bank of Sharjah ahead; Nigeria, Angola, others perform; Ukraine lags

By Christine Van Dusen

Atlanta, Feb. 24 – Emerging markets assets put in a calm session on Friday following a rally in the U.S. Treasury curve and little in the way of alarming political news from around the globe.

“It’s a calm day ahead of the weekend, and so far, it has been remarkably calm from United States politics this week,” a London-based analyst said. “That said, yesterday’s comments by Treasury Secretary Mnuchin revived some speculation on a corporate tax reform.”

Against this backdrop, Slovakia and Dubai’s Majid Al Futtaim Holding LLC set roadshows, Oman named bookrunners and United Arab Emirates-based Bank of Sharjah revived plans for a deal.

Investors were keeping an eye out for the upcoming issue of about $500 million of bonds from Nigeria.

Earlier this month the sovereign priced $1 billion of notes due in 2032 at par to yield 7 7/8%, following talk in the 8½% area.

Also at the end of the week, spreads were mostly unchanged for most emerging markets assets, a trader said.

The week’s outperformers were high-yielders, including Mongolia – which recently secured a $5.5 billion bailout – and Angola, Egypt, Nigeria, Zambia, Venezuela and Ecuador. Ukraine was the notable underperformer, the trader said.

Recent inflows, which have been solid, “undoubtedly remain the offsetting factor, but the mood could change swiftly in the next few days,” he said.

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