MNI EM Credit Weekly: It's Raining Bonds
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EXECUTIVE SUMMARY
Overall spreads show resilience despite a deluge of primary issuance. In Asia, Thailand surprised markets by keeping rates unch at 1.5% (25bp cut expected) possibly to preserve future policy space. In CEEMEA, GCC issuance continued to rain down. In Latam, Argentina spent scarce FX reserves attempting to support its ccy, then the U.S. came to the rescue.
Next week, we expect new issuance to continue globally, with more corporates potentially coming to the market given imminent blackout period. Argentina bond prices may react positively as President Milei meets President Trump in the White house. In Asia, results season kicks off, with LG Electronics to give us a signal on how tariffs are impacting Korean corporates. Reliance Industries may kick of its Jio IPO.
Sovs mentioned: Argentina, Brazil, Ecuador, China, Indonesia, Thailand, Philippines, Korea, Angola, Oman, Poland and Czechia.
- Corps mentioned: Braskem, Ambipar, Raizen, Halkbank, Ivanhoe, Vakif Katlim, Vanke, Posco, LG Electronics and Reliance Industries.
