LatAm credits slightly higher to start week
By Davide Scigliuzzo
NEW YORK, May 4 (IFR) - Latin American credit markets opened marginally stronger on Monday at the start of a busy week for corporate earnings across the region, which will also include the US jobs report.
Trading was subdued at the open as local traders and investors returned from a long May Day weekend, while the UK bank holiday was also keeping a lid on the action.
Investment-grade corporate credits opened 1bp-2bp tighter in spread, while high-yielding sovereigns Argentina and Venezuela were outperforming low-beta credits such as Mexico.
"It is tough to really give a handle today," said a sovereign bond trader in New York. "Brazil cash is under a bit of pressure, but Argentina and Venezuela are a touch firmer."
Weakness on the Brazilian bond curve was concentrated at the long end, where the sovereign's 2044s were down half a point from their Friday's close to 91.5-92.0, said the trader.
Argentina's Par and Discount bonds, meanwhile, opened roughly a quarter of a point higher, quoted at 58.00 and 102.75 respectively mid-market.
Stable global oil prices were also providing some support to Venezuelan bonds, with the sovereign's 2022 spotted a quarter of a point higher at 55.5 mid-market.
A string of corporate earnings this week is likely to capture the attention of traders and investors, with Brazil's Gerdau and Braskem among the names due to report. Continuación...