MNI EM Credit Weekly

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Executive Summary:

• Extraordinary U.S military events in Venezuela resulted in firmer markets and an extremely strong start to issuance globally.
   
• In Asia, Bank of Korea will update on base rates, consensus is for no change at 2.5%, with the governor expecting inflation to stabilise. China Vanke is fast approaching its grace period deadline for its RMB 2bn 3% bond (27 Jan.), and we may see additional concessions for bondholders. Primary expected to remain hot ahead of results season, and spreads to remain firm.  In CEEMEA, National bank of Poland is expected to keep rates unchanged despite CPI data in December confirming disinflation. There are no sovereign rating reviews due in CEEMEA next or major corporate earnings, setup investors and the market to focus on new issuance. Argentina CPI report due next week with bond prices vulnerable as the market expects improvement in inflation this year.