LATAM WRAP-Brazilian credits lead sell-off amid market rout
By Davide Scigliuzzo
NEW YORK, Dec 11 (IFR) - Latin American credits came under renewed pressure on Friday, amid a broader sell-off in commodities and equities, with Brazil once again leading the sell-off.
"You look at the screens today and you want to cry," said a senior banker covering the region.
A 4% slide crude, with Brent sliding below US$38 a barrel and nearing an 11-year low, drove down corporate credits across the region though actual trading volumes were low.
Bonds issued by Brazilian state-run oil company Petrobras slid by around a point in price in the belly of the curve, with the 2024s seen ending the day at 72.5-73.5, according to one New York-based trader.
Even financials were getting hit, with Itau's 2023s, for example, ending the day half a point lower at 88.75-89.25.
The negative sentiment has so far prevented Argentine oil and gas company Medanito from pulling the trigger on its planned US$150m bond sale.
"No one in their right mind would be moving ahead this week," said a banker close to the trade.
Elsewhere in the region, Argentina's new government is negotiating with a group of Wall Street banks for a credit line worth up to US$7bn to bolster its low foreign reserves and help it eventually lift capital controls, a banking source said told Reuters on Friday. Continuación...