CAR, Korea Development Bank tap market; Bahrain widens; Lat-Am wider; Sagicor on deck

By Christine Van Dusen

Atlanta, Aug. 3 – China’s CAR Inc. and Korea Development Bank sold notes on Monday as Asian equities dropped, Treasuries rallied and the dollar rebounded on the news that monthly manufacturing in China declined as a result of weakened demand.

Also on Monday, oil prices dipped again and the Athens Stock Exchange reopened after five weeks, then dropped 22% “before steadily paring back some losses,” according to a report from Barclays.

“Investors await 'Super Thursday' in the United Kingdom, with the inflation report, monetary policy decision as well as the immediate release of the meeting’s minutes,” the report said.

Meanwhile, tensions grew in Turkey, raising the likelihood of a snap election, the report said.

“Interesting dynamics continue in the market,” a London-based trader said. “Oil is once again slipping, and Bahrain's 2044 is wider by nearly 50 basis points on the month.”

Saudi Electricity Co.'s bonds saw two-way activity, with the 2043s and 2044s cheapening about 28 bps over the month amid some demand, he said.

At the end of the day, low-beta spreads for Latin American bonds widened amid ongoing weakness, another trader said.

Separately, Barbados-based Sagicor Financial Corp. set initial talk in the low-9% area for a $320 million issue of seven-year notes, a market source said.

JPMorgan and Scotiabank are the bookrunners for the Rule 144A and Regulation S deal.

© 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.