CEE Bonds

The EM primary bond market took just one day to digest Donald Trump’s unexpected ascent to the US presidency before new issuance resumed with a Gazprom bond. That was far quicker than the seven days it took the market to reopen after the Brexit vote on June 23.

Remarkable resilience in the face of an uncertain future was the tale of emerging market bond prices on Wednesday as Donald Trump won the presidential election in the US, much to the surprise of EM traders themselves, who expected the risk aversion to last much longer. But the outlook for EM bonds under a Trump presidency is far from rosy. Latin America has been the clear underperformer so far but more pain is expected.

Investor support for Turkey has proved remarkably resilient this year. A coup attempt and ensuing state of emergency, and two downgrades to junk, did little to shake support, but Turkey’s luck is running out as the attention turns to deteriorating economic indicators from the region.

Turkish bonds sold off some 30bp on Friday after President Recep Erdogan’s crackdown on the country’s pro-Kurdish opposition escalated with two high profile arrests. The widening is likely to halt Turkish bond issuance for this year, according to an EM DCM banker focused on the region.

Citi has promoted its Turkey CEO into a broader role of EMEA head of non-presence countries.

Renaissance Capital has hired a new head of international equity capital markets, and its US subsidiary RenCap Securities has added two senior bankers to its fixed income, currencies and commodities team.

Leveraged buyout activity in Central and Eastern Europe is gaining momentum, driven by a few jumbo deals pushing for terms and pricing more commonly seen in Western European markets. For some local banks, the conditions are too tough to compete.

Russia’s Domodedovo Airport attracted more than $900m of orders for a new five year dollar bond on Thursday, despite deteriorating market conditions.

Russia’s Domodedovo Airport on Thursday morning set initial price thoughts for a new five year dollar bond.

The Polish government and a state owned development bank have both made a rare appearance in the MTN market.

Gazprom has picked four banks to arrange a roadshow as bankers debated whether the state controlled giant is paying up or cashing in by planning a bond in euros.

CEEMEA borrowers raised $37bn of euro and dollar bonds in October, making it the busiest month on record.