Chile takes center stage in strong LatAm market

martes 19 de mayo de 2015 10:46 GYT

By Paul Kilby

NEW YORK, May 19 (IFR) - LatAm credit markets got a solid start on Tuesday as the Republic of Chile took advantage of a rally in Europe and renewed appetite for risk to announce a dual-tranche euro offering.

Bonds yields tumbled in Europe on news that the ECB would speed up its bond buying program, sending the 10-year German Bunds down to 0.63%.

And while US rates have subsequently backed up after data Tuesday showed US housing starts hitting their highest level in about 7.5 years, investors are taking the move in their stride.

Yields on the 10-year benchmark were back at 2.30% on the news, up about 15bp from the 2.15% seen Friday, but LatAm credit remain well supported.

"It seems like last week's taper tantrum is a thing of the past," said a New York based trader. "Customers are more willing to take risk (this week)."

A new three-year bond issued by Brazil's largest private bank Itau-Unibanco was being bid at 100.125, off an earlier high but comfortably above reoffer of 99.971.

That bond along with the 2021s issued by Brazilian oil company Petrobras - which enjoyed a decent rally Monday on stronger than expected results - were the two most active bonds being traded this morning.

The 2021s were weaker in price terms Tuesday but still enjoying some spread tightening to be quoted earlier at around 418bp-412bp.   Continuación...