Brazil leads LatAm credits higher

miércoles 8 de abril de 2015 17:10 GYT

By Davide Scigliuzzo

NEW YORK, April 8 (IFR) - Latin American credit markets ended Wednesday's session on a higher note with several names in Brazil benefiting from a strengthening Real even as the US dollar gained ground against other major currencies.

"The lack of negative news had everyone buying today," said a corporate bond trader in New York, who argued the rally was probably one of the best enjoyed by Brazil so far this year.

Bonds of state-run oil company Petrobras were ending the session some 20bp tighter in spreads, with its 2024s last quoted at 475bp-465bp and its 2044s at 480bp-470bp.

Brazilian financials also continued to reap gains, with notes issued by development bank BNDES ending the session one to two points higher in price.

A 9% perpetual note issued by Banco do Brasil - often seen as a bellwether for financials in the country - was last quoted at 92.25-92.75, or between half and three quarters of a point higher on the day, said a second New York-based trader.

Elsewhere in the region, Chilean retailer Cencosud also saw good demand for its paper, with its long-dated 2045s ending the session at around 97.75, or three quarters of a point higher.

In primary markets, Mexico broke a one-week lull in activity for Latin American issuers with a new EUR1.5bn century bond that attracted around EUR6.25bn in orders.

The issue, which carries a coupon of 4% and priced at 95.322 to yield 4.2%, was bid as much as a full point higher in the gray market on Wednesday afternoon, according to the second trader.   Continuación...