Primary hosts Paraguay, TMB Bank, YIG; oil, equity sell-off weakens some EM; Turkey tightens

By Christine Van Dusen

Atlanta, March 23 – Paraguay, Thai Military Bank (TMB Bank) and China’s Yunnan Provincial Investment Holdings Group (YIG) sold notes on a Wednesday that saw some risk assets weaken in light of the oil and equity sell-off and volumes taper off ahead of the Good Friday holiday.

“Odd day today, as the general weaker tone has been offset by the cash inflows that need to be put to work,” a trader said.

Said another trader, “Overall this market continues to trade well. Easter holidays this weekend, before we arguably head into a key couple of months before Ramadan. The window for the much-rumored and talked-about supply is surely post-Easter and pre-Ramadan.”

Most Latin American notes opened a bit softer on Wednesday but finished on solid footing, a New York-based trader said.

From the Middle East, perpetual bonds remained popular and well off their lows, a London-based trader said. Among them was Dubai’s Majid Al Futtaim Holding LLC and Kuwait’s Burgan Bank, which both have moved more than 100 basis points tighter over the month.

Looking to Turkey, bonds opened about 5 bps tighter and sellers were seen for long-dated paper as controversy continued for several corporates, a trader said.

Bonds from the sovereign have been “remarkably resilient” amid controversy at Halkbank, ISCTR, a possible rate cut, ongoing fighting at the border, the migrant crisis and terror attacks, another trader said.

© 2015 Prospect News.
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