2000-04-25 Debt prices surge
Daily Brady Bond Trading Commentary
Tuesday April 25, 2000
Emerging markets debt prices surged Tuesday across the board on the back of a strong rebound in U.S. and local equity markets.
Customer activity helped to boost prices, but trading activity remains dealer-led. Argentina plans to issue up to $3 billion in new global bonds in exchange for Bocones and Bradys within the next 90 days, which could allow the government to achieve NPV savings of over $400 million.
The government also plans to offer the new bonds, which will come at two maturities, for cash. News of the deal lifted Brady Bond prices early in the day, but Argentine global bonds rallied as well, despite the substantial amount of new supply for that sector of the market.
The country, which has typically run one to two quarters ahead in its external financing needs, has not yet met all of its Q2 funding requirements. The bottom line is that there will be plenty more to come from the government of Argentina this year, market conditions permitting.
Contributed by
Credit Lyonnais Securities (USA) Inc.
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