Brazil names lead region tighter
By Paul Kilby
NEW YORK, April 22 (IFR) - Brazil names led LatAm credit spreads tighter Wednesday as the region's bond prices held their own against rising yields in the US Treasury market.
Brazilian iron miner Vale proved to be the outperformer as its curve tightened by as much as 20bp with 2020s and 2040s closing at 295bp-284bp and 400bp-395bp, respectively.
News that rival BHP Billiton had deferred spending in its iron ore division raised hopes that the commodity may soon see a reversal in recent price declines, and help Vale gain market share.
Elsewhere in Brazil, bonds issued by oil company Petrobras were flat to a touch tighter ahead of the expected release of full-year audited financial results later this afternoon.
The 2024s were closing unchanged at around 450bp-440bp, while the 2044s were ending about 3bp tighter at 478bp-468bp.
In other parts of the region, bonds issued by Colombian quasi sovereign utility Empresa de Energia de Bogota (EEB) jumped after the company announced today that shareholders had authorized an up to US$1.5bn local and international bond offering to refinance US$749m in outstanding 6.125% 2021s.
The 2021s gained about 20bp on the news to close at 107.75-108.75, according to the trader.
In the sovereign space, Bonar 2024s ended the day lower at mid-market price of around 103.75 after holdout investors suing the sovereign asked US courts to force Argentina, Deutsche Bank and BBVA to disclose details on a US$1.416bn sale of those instruments. Continuación...