Dearth of new issues lift LatAm credits
By Davide Scigliuzzo
NEW YORK, April 7 (IFR) - Latin American credits ended the day better bid on Tuesday, as investors deployed cash across a broad range of names in the secondary market amid a lack of new issues.
"We saw some strong performance across the space," said one high-yield corporate trader covering the region. "It is just a positive, risk-on environment. Investors have money to put to work that they have built up since the fall."
While bankruptcy fears over Brazilian oil services firm Schahin caused the company's 2022s to drop by another 10 points to close at 38.5-41.0, other names in the country enjoyed decent buying throughout the day.
Several bank bonds were ending the session higher as accounts sought to buy on recent dips. BNDES's 2023s were last quoted at 104.4-105.0, over a point up on the day.
"Aside from Schahin, Brazil feels better," said the trader. "Some banks have been overly beaten up."
Elsewhere in the region, Mexican cement company Cemex also saw good buying across its curve, with the 2025s last quoted at 102.5, or about a point higher.
A positive tone across oil markets was also helping sentiment towards the region, lifting Venezuelan bond prices. The sovereign's benchmark 2022s, for example, ended the day around a point higher at 45.5-47.0, according to a Miami-based broker.
Colombian utility Empresa de Energia de Bogota (EEB) has received a green light from shareholders to issue new debt as part of its refinancing of a US$749m bond maturing in 2021. Continuación...