New issue from Korea Development; Swire, Jiangsui set talk; roadshows for AirAsia, Sharjah

By Christine Van Dusen

Atlanta, Jan. 6 – Korea Development Bank sold notes and some issuers – including Malaysia’s AirAsia Bhd. and the Emirate of Sharjah – set roadshows on Wednesday as the yuan moved lower, commodities weakened, U.s. Treasuries were better-bid and risk markets struggled.

“[Emerging] markets are opening softer this morning,” a London-based strategist said.

Also impacting sentiment was the news that North Korea may have conducted another nuclear test, according to a report from Barclays Capital.

And “the escalation of tension in the Middle East has increased uncertainty, but the effect on oil prices is not clear-cut,” the report said.

Latin American bonds tried to hold on to the previous day’s gains amid better buying, a New York-based trader said.

“Colombia banks continue to see better buyers,” he said. “Bank of Colombia 2021 and 2022 have shot up nicely in the last few weeks.”

High-grade petrochemical credits from Mexico moved higher, he said, but Brazil’s Petroleo Brasileiro SA and Vale SA moved lower on Wednesday morning.

High-grade names from Chile were “subdued” amid small gains, he said.

“Overall it feels like we are getting back some liquidity,” he said. “Clients are beginning to work off the eggnog and are more active. We should see some new deals in the pipeline very soon. There is, however, a pretty strong cautious undertone present right now, or at least that how it feels.”

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