1999-12-16 Venezuelans vote

Daily Brady Bond Trading Commentary

Thursday December 16, 1999 

Venezuelans voted to approve the country's latest constitution by a wide margin 71% to 29%,

though abstentions ran high at 55% of the voting population. President Chavez showed a much gentler tone to his opponents after the victory ensured his control over the government for perhaps the next twelve years. Though volatility on Venezuelan debt may subside in coming weeks, we see longer term political stability as a possible only as long as oil prices do not break down.

In line with expectations, Brazil's COPOM left the selig rate unchanged and maintained a neutral bias. Moody's decision to upgrade Brazil's local currency and foreign currency deposit ratings, as well the foreign currency deposit ratings on twenty-eight banks, gave the market a lift late Thursday afternoon. Most Brazilian assets made new highs for the year, dragging the rest of the market higher.

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.