LATAM WRAP-Oil credits, BTG Pactual bonds under pressure
By Davide Scigliuzzo
NEW YORK, Dec 8 (IFR) - Commodity-related credits remained under pressure on Tuesday, as crude prices plunged to lows not seen since the financial crisis.
Spreads on 10-year sovereign bonds issued by Mexico and Colombia have widened by 12bp and 20bp since Friday's close as dealers reacted to a 6% slide in crude over the same period.
Notes with similar maturities issued by the two countries' state-run oil companies - Pemex and Ecopetrol - similarly widened by 16bp and 30bp.
In Brazil, bonds of BTG Pactual dropped to new lows after Brazilian prosecutors formally charged the bank's founder and former chief executive in an ongoing corruption probe.
BTG's senior unsecured 2020 notes were ending the day at a cash price of 52-54, or eight points lower on the day, while the 2022s lost around seven points to close at 45-47, according to a New York-based trader.
Against this backdrop, even a top-notch issuer like Chile, which on Tuesday kicked off investor meetings in Europe, is seen as an unlikely candidate to tap the market before year-end.
The sovereign, rated Aa3/AA-/A+, is expected to return to the international bond markets, after announcing a four-day roadshow in Europe and the US.
It hired Bank of America Merrill Lynch, Citigroup, HSBC and Santander to organize the meetings, which are being marketed as investor updates without mention of any specific transaction. Continuación...