MNI EM Credit Weekly

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EXECUTIVE SUMMARY:

• EM $ indices were wider (+3bp) on sustained primary supply despite a ceasefire between Israel & Iran, levels are still close to the tights of the year. LATAM $ index spreads outperformed, unchanged on the week, with CEEMEA (+5bp) and ASIA (+2bp) lagging.
• In ASIA, Thailand is seen as vulnerable, with recent political instability and tariff risks driving spreads wider. The Chinese real estate sector benefited from NWD refinancing progress, supporting the sector - China Vanke (+4pt).
• In CEEMEA, Angola has signed an MoU in which it will develop electricity transmission lines, positive read for Ivanhoe Mines. South Africa agreed a $1.5bn loan with the World Bank, supportive of Eskom and Transnet.
• LATAM primary supply has been the most significant across regions.  The IMF is carrying out its first review in Argentina. Mexico will soon announce a long-term plan for Pemex.