Investors await Brexit vote results; tone ‘cautiously positive’; DP World notes active

By Christine Van Dusen

Atlanta, June 23 – Trading of emerging markets assets was somewhat quiet but “cautiously positive” on Thursday morning as investors awaited the results of the United Kingdom’s vote on whether to leave the European Union.

Still, Dubai-based marine terminal operator DP World’s 3.908% notes due in 2023 – which priced in May at par to yield 3.908%, or 237.5 basis points over mid-swaps – saw some action.

The notes traded Thursday morning at par bid, 100¼ offered, a trader said.

Meanwhile, anticipation about a ‘remain’ or ‘leave’ vote for the United Kingdom did not harm most emerging markets bonds, a London-based strategist said.

Most polls show that voters favor remaining in the European Union, he said.

“Markets continue to dismiss the idea of a potential ‘Brexit’ scenario as two polls from late yesterday showed a stronger tendency towards the ‘remain’ campaign,” he said. “We open up cautiously positive this morning.”

Latin American bonds finished the day close to the tights of the session, a New York-based trader said.

Middle Eastern bonds put in a “fairly active and overall positive session,” a trader said.

In deal-related news from Asia, China’s Jiangsu Hanrui Investment Holding Co. Ltd. set the tenor at three years for its upcoming issue of dollar-denominated notes, a market source said.

© 2015 Prospect News.
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