LATAM WRAP-Region ends tighter as appetite for risk rises
By Davide Scigliuzzo
NEW YORK, July 13 (IFR) - Latin American credit spreads were ending the day tighter on Monday as sentiment was helped by a rise in equity indices.
Names that were recently hit by the sell-off in commodities, such as Brazilian miner Vale, have more have recovered from last week's losses and continued to grind tighter, said a trader.
Vale's curve was ending the session some 10bp tighter in spreads, while notes issued by state-run oil company Petrobras were about 7bp tighter on average.
"People are putting money to work and prices are slightly up, but liquidity is still very poor." said a corporate bond trader in New York.
"There are many opportunities and relative value ideas, but real money (accounts) are not selling and dealers are not taking risks."
Colombia's oil company Ecopetrol was among the underperformers, with the belly of its curve some 2bp wider on the day.
Elsewhere in the region, trading in Argentine bonds was somewhat muted as the market digested a new poll showing business-friendly presidential candidate Mauricio Macri as having a 3.6 percentage point lead over his main opponent Daniel Scioli in potential run-off elections.
Argentina's Discount bonds were unchanged to half a point lower at a cash price of around 97.375 mid-market, while local-law Bonar 2024s were a touch higher at 98.5. Continuación...