LatAm credits end near intra-day highs
By Davide Scigliuzzo
NEW YORK, March 23 (IFR) - Latin American credits enjoyed strong buying on Monday as several investors sought to add risk in anticipation that US interest rates will not rise as aggressively as they had feared.
"A lot of this stems from the change in risk appetite post the Fed," said a sovereign bond trader in New York. "People were very defensive going into the Fed meeting. We have had a key reversal."
Brazilian credit spreads tightened by 10bp to 15bp across the board today, outperforming some investment-grade countries in the region.
In the corporate space, bonds issued by Brazilian state-run oil company Petrobras ended the session between 20bp and 30bp tighter in spreads, with the 2024s last quoted at 545bp-535bp and the 2044s quoted at 550bp-540bp.
"Everything is rallying and we are closing at the tights of the day," said a New York-based corporate bond trader focusing on Brazil.
Higher-yielding notes such as construction company Odebrecht's 2042s, meanwhile, jumped three points in price to end the day at 75.5-76.5, according to the trader.
Buying appetite appeared well distributed across credit ratings and maturities.
"We are seeing good duration buying out of insurance companies, rates buyers at the front of the curve and dedicated EM buyers in the middle," said the trader. Continuación...