NEW YORK, March 31 (IFR) - Latin American credits ended Tuesday’s session better bid with sovereign and corporate credits both enjoying strong buying appetite in spite of falling oil prices.
“The market was very strong. we saw a lot of buyers,” said a corporate bond trader in New York, who argued a firmer Brazilian real and month-end buying from fund managers were helping support prices.
In Brazil, bonds issued by state-run oil company Petrobras were ending the day between 10bp and 16bp tighter, said the trader, who had the 2024s quoted at a spread of 515bp-505bp.
Construction company Odebrecht, meanwhile, saw its 2025s jump by as much as 3 points to 94.5-95.5, while its 2029s were ending higher by around 1.5 points to 82.5-84.0.
Sovereign bonds were ending the day marginally higher, with most benchmarks between a quarter and half a point stronger in price terms, said a second trader in New York.
In primary markets, Mexican media company TV Azteca has priced a rare project bond related to the development of its fiber optic network concession in Peru.
The senior secured notes, which have an average life of 9.5 years and final maturity in 2031, priced at par to yield 5.875%, compared with guidance of 5.75%-6.00%.
The bond, which is backed by project cash flows, was issued by special purpose vehicle Red Dorsal Finance Limited. BESI-Grupo Novo Banco and Credit Suisse were the bookrunners.
Reporting by Davide Scigliuzzo