MNI EM Credit Weekly

Download Full Report Here

EXECUTIVE SUMMARY

• EM secondary market spreads maintained their tightening bias. LATAM continued to shift politically to the right with Hondurans electing a conservative, market friendly president following Bolivia and Ecuador earlier this year. Türkiye inflation rose less than expected setting the stage for further rate cuts. In Asia, India corporates were in focus as both Moody’s and S&P raised their outlook on mining company Vedanta Resources to Positive.
  
   
• Focus next week turns to the FOMCs rate decision with a 25bp cut expected. Fitch is reviewing Rep of Hungary after the close today while Moody’s review’s South Africa. Argentina will submit reform proposals to congress for the 2026 budget with bonds vulnerable to political drama. In Asia, China CPI data is expected to be released, whilst the wider region gears up for a potential rate rise by the BoJ the following week.

Sovs mentioned: Honduras, Bolivia, Ecuador, Argentina, Turkiye, India, South Africa, Hungary, Czechia, China, Japan

Corps mentioned: Vedanta Resources, Reliance Industries, ANZ, Vista Energy, Adani Ports, Meituan, Xiaomi, SAPPI, UPM, Tullow Oil, Adecoagro, Vanke, Navoi, Braskem, CEZ, Novonor, Petrobras, Province of Santa Fe, MercadoLibre, Yapi Kredi, Absa Group