2000-01-26 Argentina 12.08% USD 1.25Bil 20yr
Daily Brady Bond Trading Commentary
Wednesday January 26, 2000
Argentina came to the market yesterday with a US$ 1.25 billion 20-year bond yielding 12.08 percent and managed to hold above the fixed reoffer price.
This was Argentina's third bond sale since the government of President de la Rua took office in mid-December. Turkey tapped the Euro market taking Euros 750 million at ten years. On the banking side, tomorrow Banco Bradesco will issue a 2-year US$ 100 million Eurobond at a price of 9 to 9.25 percent.
So long as we see supply, and the threat of higher rates following the FOMC Meeting on February 2, it is difficult to see Brady bond prices rally and we saw prices slowly wilt.
In Ecuador the new President chose Pablo Concha as his Minister of Finance, a position that Mr. Concha held some four years ago under former President Abdala Bucaram, whom the Ecuadorean Congress removed on grounds that he was mentally unfit.
Contributed by
Credit Lyonnais Securities (USA) Inc.
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