2000-03-30 Dealer selling

Daily Brady Bond Trading Commentary

Thursday March 30, 2000 

Dealers showed weak hands Thursday, selling emerging markets debt as U.S. tech stocks and local equity markets tumbled.

End-of-quarter considerations may have been adding fuel to the fire as well, and Friday should shape up to be a volatile day. We believe that underlying fundamentals remain positive and that further equity-related selling, were it to continue Friday morning, would provide a good buying opportunity.

We also believe it is prudent to focus on assets that country's like Mexico and Brazil will continue to retire. Ecuadorian President Noboa's decision to veto the provision for voluntary restructuring of private sector debt may be costly in that final IMF board approval of the recent financing agreement has not yet been achieved.

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.