Bonds tighten amid difficult liquidity; Lithuania, Falabella advance deals; roadshows ahead

By Christine Van Dusen

Atlanta, Oct. 22 – Chile’s SACI Falabella and Lithuania advanced deals on Wednesday amid tighter spreads and challenging liquidity for many emerging markets bonds.

Abu Dhabi-based Dolphin Energy Ltd. LLC’s 2021s were among the bonds low on the liquidity scale, trading up at 114½, a London-based trader said.

“The bond is 16 basis points tighter on the day and the best part of 40 bps tighter on the week,” he said. “Bear in mind, weekly changes are going to show big tightening, given what we went through in the market last week.”

Meanwhile, bonds from Qatar and Bahrain saw good activity. Qatar’s 2018s traded between 101.55 and 101.65 while Bahrain’s 2044s traded at about 103 on the bid side at midday, he said.

“Perpetuals were once again a mixed bag, with sellers of Global Education Management Systems and Emirates Islamic Bank,” he said. “Two-way for Burgan Bank.”

Dubai’s Damac Real Estate Development Ltd. saw its bonds trade near 96, off the previous week’s lows but still struggling, he said.

“It’s 20 bps tighter on the week,” he said. “Plenty of action for Qatari Diar 2020s, which are the best part of 30 bps tighter on the week.”

For bonds from Latin America, Wednesday was fairly subdued, with low volumes for even the most popular credits, a New York-based trader said.

© 2015 Prospect News.
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