Central and Eastern Europe (CEE)
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Another new deal from a low triple-B issuer should encourage others in EM -
Investors were concerned earlier in the year that Romania was issuing too much
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It had hoped to raise funds off longer dated bonds but investors are too risk-averse
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It can take years to prepare bonds in some markets, but that can bear fruit
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Euro market does not offer the size or duration it used to
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Lithuania also considering returning to the US as the euro market struggles
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BGK had been unable to tighten pricing back on May new issue
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Other CEE issuers will take note but not read much into the outcome of BGK's deal
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The CDS auction for Russia will be held on September 12
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GC Asia View
News that toxic assets will be tradeable for a time and replacement corporate bonds are on the way could dent attempts to weaken the country’s financial system
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Meanwhile, auction for Russia CDS date narrowed
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Despite better markets, few expect issuance volumes to recover from lowest levels in years
