Sovereign emerging bond sales up 50 pct yr/yr in 2016

miércoles 29 de junio de 2016 08:56 GYT

By Sujata Rao

LONDON, June 29 (Reuters) - Emerging market sovereigns borrowed just over $80 billion in international bond markets in the first six months of 2016, a 50 percent jump over year-ago levels, thanks to hefty new issues from Argentina and Qatar.

Bond sales by emerging companies were however down by 15 percent to $134 billion as of June 27, data from Bank of America Merrill Lynch showed, as Russian and Brazilian firms mostly stayed away despite a slight pick-up in the second quarter,

Global market turmoil early in the year pushed emerging debt sales to a six-year low, but signs U.S. rates would rise more slowly than expected has since allowed markets to recover.

A fall in U.S. and German yields, from which emerging debt is benchmarked, has also spurred issuance.

"Sovereigns have financing needs that they feel can be partially met with relatively low sovereign yields compared to the higher local yields at this time," said Jane Brauer, fixed income strategist at BAML.

Sovereign issuance has been pushed up by Argentina's $16.5 billion bond that marked the country's return to bond markets after a 15-year gap. The issue amassed orders of almost $70 billion.

Qatar's $9 billion bond meanwhile was the biggest ever Gulf offering and orders topped $23 billion.

Russia sold Eurobond in May after three years. But big investors appear to have shunned the issue which was not cleared by the Clearstream and Euroclear settlement houses   Continuación...