2000-03-01 Mexico 10yr issue

Daily Brady Bond Trading Commentary

Wednesday March 1, 2000 

Mexico increased its 10-year issue size to Euro 1.0 billion as the country's dollar-denominated debt continued its very strong performance.

European accounts were anxious to grab Mexican paper at 210 bps over bunds, with the prospect of a Moody's upgrade within the next two months. The oil market remains hot as well, and discussions among oil ministers about production increases and a $25/bbl target has hardly been enough to stem the rally.

Mexican Bradys have room to outperform globals on a spread basis, especially as value recovery rights become increasingly in-the-money, assuming the market can overcome chronic problems with settling the warrants.

Contributed by

Credit Lyonnais Securities (USA) Inc.

This report was prepared by Credit Lyonnais Securities (USA) Inc. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to accuracy or completeness. Returns set forth in this report are estimates based on internal assumptions, and any changes in these assumptions may have material impact on such estimated returns. This is not a solicitation or any offer to buy or sell securities. We, our affiliates, and any officer, director or stockholder or any member of their families, may have a position in and may from time to time purchase or sell any of the above mentioned or related securities.