MNI EM Credit Weekly

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EXECUTIVE SUMMARY

• Global EM USD spreads tightened marginally over the week (‑2bp), with no major outliers despite heavy primary issuance ($29bn). Emerging markets remain politically resilient despite the turmoil.
   
• In Asia, all eyes will be on China Vanke, and whether an agreement with onshore investors can be reached to avoid a default. Expect more news on a possible tie-up between Rio Tinto and Glencore, we think less than 50% chance of a dealing. In CEEMEA, Fitch and Moody’s are expected to review Turkey sovereign, where we expect affirmation from both, while the CB is expected to cut rates by 150bp. Pemex management is scheduled to join Mexican President Sheinbaum’s daily press conference, potentially announcing more details about investments by global oil majors which could support Pemex viability and tighten bond spreads.