2000-01-05 Argentina Euro Issue
Daily Brady Bond Trading Commentary
Wednesday January 5, 2000
Although Argentina was able to launch its Euro 750 million 7-year issue this week, anticipated USD issues out of Brazil and Argentina may be on hold for the moment.
Uncertainty stemming from volatility in U.S. financial markets has raised borrowing costs, at least for the moment. Fund managers have cash to put to work, but appear determined to do so on a more opportunistic basis than in the past. Activity may subside Thursday, as the market awaits the U.S. employment reports.
Good news on the interest rate front at this time is that the market has fully discounted 50 bps of tightening by the end of the first quarter. Ecuador's government indicated that it would not dollarize or impose capital controls to halt the decline of the sucre. The news was not soothing, as the government revealed no plans to counter the rapid depreciation of the currency.
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.