2000-04-04 Debt under pressure
Daily Brady Bond Trading Commentary
Tuesday April 4, 2000
Emerging markets debt remained under pressure Tuesday as traders reacted to further weakness in equity markets.
The strong bounces in the NASDAQ and Dow Jones indices late in the day brought some buyers back into the market, but EM debt remains a dealer driven market. As we are likely to take direction from U.S. equity markets in the near term, we see little upside to aggressively trading bonds.
We continue to look to add to positions in Mexico and Brazil on major pullbacks. Ironically, nobody appears to be concerned about interest rates for the moment.
As U.S. Treasuries were higher again Tuesday, partially on a flight-to-quality bid, credit spreads continue to widen across all sectors. Fundamentally, EM debt is not the only fixed income asset class that appears to have value.
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.