Andean credits outperform as crude woes weigh
By Paul Kilby
Feb 11 (IFR) - Andean and Mexican names outperformed in a flight-to-safety bid Wednesday as investors shed oil names and stayed clear of credits associated with the scandal at Brazil's Petrobras.
The backdrop continues to serve Argentine borrowers well, as investors bet on more upside in a country expected to enjoy a more market-friendly government come elections in October.
The City of Buenos Aires was able to address refinancing risks today as it raised US$500m with a six-year bond that saw some US$2bn in demand.
Proceeds from the bond - which was priced to yield 8.95%, or some 30bp tight to initial talk - will go toward covering an April 6 bond maturity of roughly the same size.
Meanwhile a return to a 2% yield on the US 10-year Treasury applied further pressure on the sovereign space, where Brazil 2025s are now trading at a mid-market price of 96.75.
Still, Chilean retailer Cencosud's recently minted 10 and 30-years, which have suffered from the back-up in rates, were recovering a touch, according to one trader.
Those bonds were up about 1/8, with the 2025s being quoted at 98.75-99.24 and the 2045s at 98.25-98.75.
Elsewhere, news of US stockpiles hitting record highs sent Brent and US crude lower to hit US$54 and US$48.83 a barrel respectively, Reuters reported. Continuación...