LATAM WRAP-Region ends softer, but primary open for strong names
By Davide Scigliuzzo
NEW YORK, July 8 (IFR) - Latin American credits ended Wednesday's session mostly weaker, though some names came off their intra-day lows as sentiment improved slightly towards the end of the session.
Colombia's state-run oil company Ecopetrol was one of the worst performers in the high-grade space, with its 2025s widening by 12bp on the day to close at a cash price of 91.375-91.875.
Other investment-grade credits were ending between 4bp and 5bp wider.
The curve of Brazilian iron ore producer Vale widened by as much as 10bp at the open, but later recovered on the back of short covering to end unchanged, according to a corporate bond trader in New York.
In spite of the weakness in secondary markets, bankers said high-quality issuers willing to pay double-digit concession should have no trouble accessing the primary market over the coming days.
"When we walked in this morning we assumed this was a no-go day," said one banker in New York. "But then suddenly sentiment started to turn and it was enough for issuers to pull the trigger on the US side."
Strong credits like Chilean copper miner Codelco, which according to local reports is considering a bond deal of up to US$2.5bn over the coming weeks, should have no trouble finding buyers in spite of weaker copper prices, say bankers.
"There are always headwinds, but (Codelco) is a strong credit," said a banker. Continuación...