LatAm credits end mixed as US Treasuries sell-off

jueves 26 de marzo de 2015 17:34 GYT

By Davide Scigliuzzo

NEW YORK, March 26 (IFR) - Latin American credits ended Thursday's session mixed after US Treasuries reversed earlier gains and oil prices jumped as much as 5% on fears of increased instability in the Middle East.

While Brazil's five-year sovereign credit default swap closed flat at 280bp-290bp, bonds issued by the country's state-owned oil company Petrobras experienced another day of volatile trading.

Its curve ended some 10bp tighter after widening as much as 12bp in early trading, leaving the 2024s closing at around 530bp-535bp.

Elsewhere, price action among other oil-related credits was also mixed despite a strong rebound in crude prices after Saudi Arabian air strikes in Yemen sparked fears of potential disruptions to crude supplies.

Venezuelan bonds rose by as much as 3/4 of a point in early trading to end the day just 1/4 higher amid low liquidity. But the 2025s issued by Mexican state-controlled oil company Pemex fell 1/2 a point to end at 99.875-100.375, though spreads were tighter due to the move wider in US Treasuries.

Trading activity in high-yield corporates was particularly subdued, with the exception of Brazilian telecom company Oi, which saw its notes drop by as much as four points.

The company's 2020s were last quoted at a cash price of around 85, while its 2022s were spotted at around 78, said the trader, who attributed the move to fears about the upcoming earning results.

ColTel's new hybrid bond, meanwhile, was ending its first day of trading up half a point from par reoffer, after underperforming slightly in the gray market on Wednesday.   Continuación...