EM debt weaker as rand dips; Barbados tanks on default; Slovak Republic, ICBC pricing

By Rebecca Melvin

New York, June 5 – Emerging markets debt was a little weaker with spreads wider on Tuesday amid more currency woes and even though U.S. Treasury yields have come in some, a market source said.

Problems hit the South African rand, with that currency dropping to a two-week low on Tuesday.

Other bad news that seems largely contained due to the small amount of dollar debt affected is the Barbados default that sent its three U.S. dollar-denominated bonds down to distressed levels in the past two days.

The sovereign 7¼% notes due 2021, of which there is $150 million outstanding, were reported to have changed hands at as low as 36 from about 92 last week.

Barbados also has $200 million of 7% notes due 2022 and $190 million of 6¾% notes due 2035. Stifel emerging markets analyst Victor Fu said the bonds were trading sporadically and that the level was about 43 bid, 46 offered.

Meanwhile, the Slovak Republic was able to set final terms for 10- and 50-year notes that were well tight compared to initial talk and guidance.

Out of Asia, Industrial and Commercial Bank of China Ltd. through its London branch guided pricing on a triple tranche of U.S. dollar-denominated three- and five-year floating-rate note benchmarks and a euro-denominated benchmark of three-year floating rate notes, according to a syndicate source.

© 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.