LATAM WRAP-LatAm credit markets give back some gains
By Paul Kilby
NEW YORK, Oct 13 (IFR) - Brazilian credits were underperforming after a decent rally earlier this month on news that the speaker of the country's lower house, Eduardo Cunha, would soon start considering requests to impeach President Dilma Rousseff.
The 2024s issued by Brazilian oil company Petrobras were trading a point weaker at 78.50-79.50, while the sovereign's 2025s were down a point at 90.00.
"We have had a nice rally and people are taking profits," said a trader. "All eyes are on Brazil and if they bring this impeachment (of the president) to the table."
Elsewhere disquiet over China's economy continues to weigh on bonds issued by commodity exporters.
Lower than expected decline in Chinese exports in September combined with a sharp decline in imports did little to clarify the picture over the health of the Asian nation's economy.
The new 2025s issued by Chilean copper giant Codelco were trading some 7bp wider this morning 267bp-257bp but still tighter than recent wides of 330bp-315bp, according to a second trader.
Meanwhile, the 2022s issued by Brazilian iron ore miner Vale were some 10bp wider at 415bp-405bp.
Analysts are seeing little upside for many emerging markets countries as they adjust to tighter funding conditions and less buoyant economic growth. Continuación...