Petrobras gives back gains in mixed session for LatAm credits

martes 24 de marzo de 2015 16:53 GYT

By Davide Scigliuzzo

NEW YORK, March 24 (IFR) - Latin American credits ended Tuesday's session mixed, as a earlier bid for Petrobras and some high-yield credits began to fade in the afternoon.

While most investment-grade corporates saw spreads tighten by between 10bp and 25bp on the day, bonds of Brazilian state-run oil company Petrobras closed unchanged to 3bp wider.

Profit-taking after two sessions of solid gains combined with S&P's revision of Petrobras's outlook to negative were both to blame for the about-turn, according to a corporate bond trader in New York.

The belly of the Petrobras curve underperformed, with the 2024s ending at 550bp-541bp, or 5bp wider on the day, while the 2044s were little changed at 550bp-541bp.

A firmer start for high-yield credits also gave way to some softness in the afternoon.

Bonds issued by Mexican cement company Cemex lost between a quarter and half a point across the board, with the 2025s last quoted at 99.75. Meanwhile, Colombia-focused oil company Pacific Rubiales saw its curve drop by about a point, with the 2019s ending at a bid price of 66.

In the primary markets, Colombia Telecomunicaciones (ColTel) has opened order books for its upcoming issue of a perpetual non-call five hybrid bonds, which is expected to launch and price as soon as Wednesday. Initial price thoughts for the issue remain at mid to high 8%s.

Venezuelan bonds were also ending weaker, with the sovereign's 2022 down half a point to a bid price of 44.25 and PDVSA's 8.5% 2017s quoted one point lower at 65.25-65.75.   Continuación...