2000-03-13 Nervous start of day
Daily Brady Bond Trading Commentary
Monday March 13, 2000
Like all markets this morning the Emerging Markets started out nervously before steadying.
Trading was moderate . Standard & Poor's upgraded Mexico's long-term foreign currency rating to BB+ from BB and maintained a positive outlook. Although still behind Moodys rating, Standard & Poor's actions continue to affirm the ongoing improvements in Mexico's credit standing.
Furthermore, Mexican industrial production rose in January by 8.1 per cent well in excess of economists' predictions of 6.2 per cent and higher than December's 5.4 per cent. Mexico has started the year strongly and, with Moody's investment grade rating, foreign investment should increase. The only cloud on the horizon is the probability of increased interest rates and a slowing of the US economy.
Any slowing in the US will be felt by Mexico quite quickly but, in the short term, demand should remain robust and we expect the Mexican inflation to come in slightly under present projections.
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.