MNI EM Credit Weekly: Clouds Over Latam

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EXECUTIVE SUMMARY

• EM spreads were wider on the week driven by the US govt. shutdown and continued volatility in Argentina. In ASIA, Mining rights at Freeport Indonesia remained in the spotlight   In CEEMEA, WE Soda bonds were under pressure as arrest warrants were issued, and assets seized. In Argentina, relief turned to impatience as the FX resumed its decline, while in Brazil Braskem bondholders braced for a restructuring.
• Globally we expect new issuance to continue to flow. In CEEMEA we expect Hungary to announce CPI figure and rate decisions from Poland and Romania CBs. Better Colombia Sept. CPI data could trigger rate cuts held up by lack of progress on inflation. In Asia, Bank of Thailand monetary policy meeting is on the 8th, the focus will be on new governor Vitai Ratanakorn comments,
• Sovs mentioned: Argentina, Eucador, Brazil, Colombia, South Korea, Egypt, Kenya, Bahrain, Romania and Poland, Hungary and Moldova
• Corps mentioned: WE Soda, Vedanata, Braskem, Freeport Indonesia and Raizan