Boubyan sells bonds; EM rallies on oil, Chinese data; Brazil stands out; Mubadala sees action

By Christine Van Dusen

Atlanta, May 10 – Kuwait’s Boubyan Bank KSCP sold bonds on Tuesday as oil prices began to recover and China released supportive economic data, leading risk assets to rally.

Emerging markets assets received support from higher oil prices – $44 per barrel for Brent and $43.70 per barrel for WTI – that stemmed from wildfires in Canada. The rampant wildfires, though tragic, were expected to help alleviate some the oversupply in oil.

From Brazil, the speaker of the lower house of Brazil’s congress first announced the annulment of President Rousseff’s April impeachment, then reversed his decision on Tuesday.

In response, Brazil's spreads outperformed by a wide margin, a New York-based trader said.

Five-year credit default swaps spreads for the sovereign tightened to 335 basis points from 350 bps, while Mexico’s moved to 165 bps from 168.5 bps.

Abu Dhabi-based holding company Mubadala Development Co.’s new issue of $500 million 2¾% notes due 2023 that priced Monday at 99.332 to yield 2.856%, or mid-swaps plus 150 bps, saw some activity in trading on Tuesday.

During the morning in New York the notes were quoted at par bid, 100.15 offered.

“Active day from the word ‘go,’” a London-based trader said.

The notes closed Tuesday at 99.90 bid, 99.95 offered, “slightly off the high prints I saw first thing,” he said.

© 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.