Findeter advances deal; Russia, Ukraine conflict continues; Chilean bonds outperform

By Christine Van Dusen

Atlanta, Aug. 6 – Colombia’s Financiera de Desarrollo Territorial SA (Findeter) advanced a new deal on Wednesday as the geopolitical conflicts in Russia, Ukraine, Israel and Argentina put pressure on the asset class.

Bonds from Russia have seen some “aggressive selling” so far this week, said Svitlana Rusakova of Dragon Capital.

“The sovereign dropped around 1 point while corporates continued to suffer from poor sentiment and lower liquidity, registering declines of 2 points to 4 points,” she said.

In other news from Russia, market sources were whispering about a possible issue of dollar-denominated notes from Moscow-based lender OJSC Alfa Bank.

Meanwhile, bonds from Latin America opened weaker on Wednesday but did see some stability as the session went on, a New York-based trader said.

Some offers were “pretty aggressive” as the market strengthened, he said, but “follow-through stability” would be necessary to sustain any positivity.

Not all names got a boost on Wednesday afternoon, he said. Weakness remained for Colombia’s Ecopetrol SA, for example. Other Colombian credits, particularly those in the banking sector, fared a bit better but still didn’t see much trading activity.

Bonds from Chile were the outperformers on Wednesday, even as liquidity remained a challenge, he said. Chile’s Masisa SA saw its 9½% 2019s, which priced at par, pull back and get better offered ahead of its upcoming earnings release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.