15 de abril de 2015 / 21:35 / en 2 años

LatAm bond rally loses steam as investors take profits

NEW YORK, April 15 (IFR) - A recent rally in Latin American credits was showing signs of fatigue on Wednesday, as investors took profits in Brazil and remained sidelined in Venezuela despite a run-up in oil prices.

Brazilian state-run oil company Petrobras’s 2024s and 2044s were closing some 20bp wider in spread terms to end the day at 455bp-450bp and 470bp-465bp respectively.

The two notes had tightened all the way to 425bp and 440bp respectively on Tuesday, after the company said the board would meet on April 22 to approve its 2014 audited financial statement.

The curve of miner Vale also widened slightly on profit taking, with the 2023s ending the session at 310bp-305bp, or 5bp weaker on the day.

Elsewhere, investors took a hands-off approach to a Venezuela debt market that is starting look expensive, leaving the oil rich country’s bonds lagging a 6% rally in WTI crude prices on Wednesday.

“The surge in oil didn’t do much for PDVSA and Venezuela,” said a sovereign bond trader in New York. “Why would you want PDVSA 2015s at 97.5-98.5 when you have two points of upside and 90 points of downside?”

Activity in Argentine bonds was also subdued, as market enthusiasm for the sovereign wanes after a considerable run-up in prices this year.

“(Activity in) Argentina has been the slowest in years,” said the trader. “I guess it is also looking expensive and there have been no news flashes on the holdouts (recently).”

Boden 2015s were ending the session little changed at 99.5-9.75, while New York-law Par and Discount bonds were last quoted at 57.5-58.5 and 105-106 respectively, said the trader.

PIPELINE

ACI Airport Sudamerica, controlling shareholder of the concessionaire of Uruguay’s Carrasco airport, has mandated BAML and Nomura to arrange investor meetings, which finished Wednesday in London and Los Angeles.

A potential senior secured 144A/Reg S deal backed by future dividends from a long-term airport concession contract may follow. ACI Airport Sudamerica is controlled by Corporacion America Airports, which has 52 airports under management.

BBVA Colombia has hired BBVA Securities and Morgan Stanley to arrange investor meetings ahead of a potential US dollar-denominated Tier 2 subordinated bond offering. The meetings wrapped up in New York on Wednesday.

Pacific Rubiales, the largest private oil producer in Colombia, has kicked off investor meetings through Bank of America Merrill Lynch, Citigroup and HSBC.

After meeting investors in Boston on Wednesday, the company will head to Santiago on April 30; Los Angeles on May 4; and Miami on May 6. (Reporting by Davide Scigliuzzo; Editing by Paul Kilby)

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