Primary hosts deals from Jamaica, Zambia, Ardshinbank; commodities weaken, EM spreads widen

By Christine Van Dusen

Atlanta, July 23 – Jamaica, Zambia and Armenia’s Ardshinbank CJSC were among the issuers to print notes on Thursday as U.S. oil prices declined, hurting cash prices and widening spreads for emerging markets assets.

Asian credits put in a soft morning session, with investment-grade cash bonds unchanged to 2 basis points wider as recent new issues underperformed, a London-based trader said.

“Korea closed unchanged,” he said. “India closed unchanged, but we had buy interests returning in the 10-year corporates.”

India-based Adani Ports and Special Economic Zone Ltd.’s new $650 million 3½% notes due 2020 that priced Wednesday at 99.524 to yield Treasuries plus 195 bps moved to 202 bps in trading on Thursday, another trader said.

The new issue of notes from China’s Bank of Communications – $2.45 billion 5% perpetual notes that priced Wednesday at par – were wrapped around par for most of the morning before closing at par bid, 100¼ offered, he said.

Later in the day, Asian bonds remained “very soft, given the strength of Treasuries, and the curve continues to flatten despite one of the lowest jobless claims for the last few decades,” a London-based trader said.

Indonesia and Philippines felt some pressure in the afternoon, he said.

“The high-yield space is a touch weaker,” he said.

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