LATAM WRAP-Commodity names underperform in illiquid market
By Paul Kilby
NEW YORK, Nov 16 (IFR) - LatAm debt prices were putting in a mixed performance amid light liquidity as commodities remained under pressure and political uncertainty in Brazil weighed on sentiment.
With both Mexico and Colombia out on holiday, flows were exceptionally light on most trading desks, even for a Monday.
Oil's inability to hold onto earlier price gains left names like Colombian state-owned oil company Ecopetrol drifting lower in an illiquid market, with the 2025s trading about half a point weaker at 91.00-91.50.
Codelco was the clear underperformer when its 2025s gapped out to 278bp-273bp - its widest level since early October - following news the Chilean copper producer would cut the premium charged on the London Metal Exchange by about 26%.
Meanwhile, Brazilian debt was inching wider, including Petrobras 2024s which were being quoted at a mid-market price of 78.00, or about 1/4 points lower.
This follows news reports that had President Dilma Rousseff expressing support for embattled finance minister Joaquim Levy, though his eventual departure is expected by many in the market.
"Most think that it is not a change of person that is needed but a change of culture," said a trader.
Meanwhile, activity in the primary market was being dominated by liability management trades. Continuación...