2000-05-11 Stalled sell-off in most Latin credits
Daily Brady Bond Trading Commentary
Thursday May 11 2000
The sell-off in most Latin credits stalled Thursday, with the exception of Argentina. Argentina's Brady and global bonds were hammered again, as heavy investor selling continues to weigh on prices.
Disappointing growth and fiscal numbers have shaken some of the longstanding confidence the market has had in the country, and even local players have found it difficult to live with the recent losses. Political pressure is beginning to build as local business and labor will look for the government to help boost the economy.
Brazil EI's have remained relatively well supported and now trade through FRBs on a yield and spread basis. Yet Brazilian global bonds still offer a sizeable yield pick-up versus Argentina of 65 to 135 bps, even after outperforming by 25-50 bps on Thursday.
Contributed by
Credit Lyonnais Securities (USA) Inc.
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