MNI EM Credit Weekly

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EXECUTIVE SUMMARY

EM $ spreads are marginally tighter driven mainly by CEEMEA, where spreads outperformed despite heavy issuance and geopolitical headlines dominating. In ASIA, China real estate sector was buoyed (5-10bp tighter) by policy shift. US immigration detained 300 Korean citizens citing visa violations, a negative backdrop for countries investing in the US. In LATAM, we saw Colombia return to € issuance after nearly 10 years with a EUR4.1bn deal and four niche issuers priced as well. Argentina sovereign bonds dropped more than 5 pt after a loss in a local election. Next week, markets focus turns to FOMC rate decision next with a 25bp cut expected.  We expect to see further issuance globally as corporates and sovereigns plan for refinancing ahead of year-end.