LATAM WRAP-LatAm commodity credits slide lower
By Paul Kilby
NEW YORK, Aug 26 (IFR) - LatAm bond prices were largely slipping on Wednesday as commodities took another tumble on lingering concerns about Chinese growth.
Discomfort over the direction of commodity prices had investors struggling to unload miners and oil-related names in what is an increasingly illiquid market.
"Everyone is clearing their positions and getting out where they can," said Klaus Spielkamp, head of fixed-income sales at Bulltick.
"But every day it is getting more difficult to find liquidity on both sides of the trade."
The 2022s of Peruvian miner Volcan continued to slide south on Wednesday, quoted about 1.5pt lower at 89.90 in what is now nearly a four-point drop since last week.
Mexican sovereign debt was also underperforming on Wednesday after Moody's put Pemex's A3 rating on review for a downgrade the previous day.
The sovereign's benchmark 2025s were being spotted at 97.00, down about three-quarters of a point. Those bonds were trading close to par earlier this month.
Pemex bonds have been relatively resistant to downward price pressures, but traders think further price depreciation is on the cards given how tight the company is trading to US peers. Continuación...