LatAm credits starts weaker amid softer tone in global markets
By Davide Scigliuzzo
NEW YORK, April 17 (IFR) - Latin American credit markets were off to a weaker start on Friday, as a negative tone across global markets caused prices to drop slightly across the region.
Spreads on most of the region's corporate bonds opened between 2bp and 8bp wider compared to Thursday's close, according to a corporate bond trader in New York.
Bonds of Brazilian state-run oil company Petrobras were also weaker, with the 2024s and 2044s quoted at spreads of 475bp-465bp and 495bp-485bp respectively in early trading.
"The market is a little weaker but not blowing up," said a second corporate bond trader in New York.
Among sovereigns, Venezuelan bonds opened between a quarter and half a point lower, as Brent prices hovered just above US$64 a barrel, within reach of their record high for the year.
Venezuela's 2022s were quoted at 51.25-52.25 in early trading, while PDVSA's 8.5% 2017s were spotted at 74.0-74.5, according to a New York-based broker.
Meanwhile, emerging market dedicated bond funds experienced US$613m of inflows in the week ended April 15, their largest in seven weeks, according to EPFR data quoted by UniCredit.
Confirming a trend seen in previous weeks, investors continued to pull money out of local currency funds - which recorded weekly outflows of US$246m - and increased their exposure to hard currency funds - which recorded inflows of US$637m. Blend currency funds saw weekly inflows worth USD223m. Continuación...