MNI EM Credit Weekly: Euro Deluge

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EXECUTIVE SUMMARY

• Spreads in EM were unchanged on the week. In Asia, China issued €4bn. In CEEMEA, financial issuance dominated, particularly in CEE, while ratings actions in Africa were in focus. Colombia announced another tender for USD bonds funded by Euro debt issuance while in Ecuador investors were disappointed with reform progress.
• Next week, we expect a solid week of new issuance before Thanksgiving. In Asia, we focus on Meituan results. In CEEMEA, we expect continued decline in inflation in Poland and downside risk for sovereign spreads in Hungary ahead of Moody’s review. In LATAM, Argentina may outline plans to refinance 2026 debt and Brazil’s Cosan may announce debt reduction plans.

Sovs mentioned: China, Indonesia, Senegal, South Africa, Nigeria, Colombia, Ecuador

Corps mentioned: Bangkok Bank, Xiaomi, United Energy, China Three Gorges, Mineral Resources, JD.com, Vanke, Meituan Czechoslovak group, Telekom SA, Kosmos Energy, Emirate of Sharjah, First Abu Dhabi,  Seplat Energy, Bank Pekao, Banca Transilvania, Nova Ljubljanska Banka, Banca Comerciala Romana, CSN, Raizen, Eldarado, Genneia, Fibra Prologia and CGC.