MNI EM Credit Weekly

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EXECUTIVE SUMMARY

• Overall, secondary spreads were resilient to issuance and only widened marginally driven by LatAm, whilst primary supply remained sustained despite earnings season. Asian markets slowed up ahead of Chinese New Year next week, spreads held firm in secondary with limited new issuance. China property dominated headlines with January sales remaining very weak, and possible lifeline for Vanke. In CEEMEA, earnings were in focus, with those of GCC real estate and banks exhibiting a supportive stance for credit sentiment and medium-term guidance. In LatAm, the U.S. took further steps to repair relations with Venezuela as hopes for a debt restructuring persisted. Panama planned to refinance up to $6bn of debt. Brazil corporate bonds were under pressure from looming credit events in several high-profile issuers.
   
• Next week In Asia, Chinese New Year starts next week, and it should be relatively quiet on the primary front. Expect the Indonesian CB to leave rates unchanged. In CEEMEA, watch for read across signal from South Africa CPI (Est: +3.5% y/y; Prior: +3.6% y/y) and Hungary state of the nation address. Earnings season continues with GCC banks (BOS, RIBL) and African miners (IVN, GFISJ, SGLSJ) in focus, as well as Mexican companies in LatAm. Panama is expected to launch a $6bn dual tranche bond deal.
   
• SOVS mentioned: INDON, SLOVGB, TURKEY, REPHUN, SOAF, ZAMBIN, KENINT, REPCON, VENZ, PANAMA, BRAZIL, DOMREP
   
• Corp mentioned: VNKRLE, ADSEZ, MEITUA, FUTLAN, AKBNK, WESODA, INPST, CZGR, ALDAR, EMAAR, QTELQD, RIBL, BOS, ADBPOC, EBIUH, MASQUH, FABUH, FMCN, ESKOM, SGLSJ, IVN, GFISJ, RAIZBZ, AEGEBZ, CSN, ALPEKA, MOVCHI, ECOPET