LatAm credit markets see firm start ahead of FOMC minutes

miércoles 18 de febrero de 2015 11:55 GYT

By Paul Kilby

NEW YORK, Feb 18 (IFR) - Latin American credit markets were seeing a quiet but firm start Wednesday morning as negative headlines out of Europe subsided and investors turned their attention to the Fed minutes to be released later today.

Brazil was leading the charge tighter as the Carnival celebration wraps up today. Oil company Petrobras curve tightened another 10-15bp in early trading with the 2016s, 2024s and 2044s being quoted at around 475bp-455bp, 500bp-495bp and 505bp-495bp, respectively.

"Brazil is the main mover because it is so cheap," said a New York-based trader. "Mexico is holding in, but a lot of the corporates there are (already) priced to perfection."

New Brazilian Finance Minister Joaquim Levy told investors in New York this morning that the government would meet its primary budget goal of 1.2% of GDP this year and that legislation would be passed to correct the country's fiscal problems, according to Reuters.

Hopes that Greece and its creditors will soon find a temporary fix to the country's debt crisis has erased some risk aversion, with markets now focused on the release of FOMC minutes and any clue about the timing of rate hikes in the US.

The yield on the US 10-year Treasury is coming off yesterday's high, and was seen this morning around 2.11%. Meanwhile, oil names were holding relatively steady in spite of another reversal in the price gains of crude.

According to Reuters, Brent crude futures fell about a dollar this morning to hit US$61.53, while US crude dropped to US$52.65.

E&P credit Pacific Cubicles saw its 2025s quoted flat at 65.205-66.00, while Colombian state-owned oil unit Ecopetrol 2025s and 2045s were being quoted at 94.375-95.375 and 96.50-97.50, respectively.   Continuación...