LatAm credit finds support on Ukraine deal, higher oil
By Paul Kilby
NEW YORK, Feb 12 (IFR) - Latin American bond prices were well-supported Thursday morning as a ceasefire deal for Ukraine and rebounding oil prices heightened comfort with emerging markets and spurred some risk-taking.
But overall traders are reporting relatively light activity ahead of a long weekend in the US and the start of Carnival holidays in Brazil next week.
Primary market activity has also virtually ground to a halt as companies head into blackout periods.
This comes after the City of Buenos Aires raised US$500m through a six-year bond yesterday that priced at par to yield 8.95%, the tight end of 9.00% (+/-5bp) guidance and well inside initial talk of 9.25% area.
Those bonds were up about half a point this morning at 100.60-100.85. Order books peaked at around US$2bn.
Meanwhile a disappointing US retail sales print has US Treasuries bouncing back, in turn widening spreads among some Latin American sovereigns as prices remain flat.
This is particularly true for Brazil, whose 2025s were unchanged at around 97.40 despite a stronger tone surrounding beleaguered state-owned oil entity Petrobras, according to one trader.
Bondholders have largely cheered local news reports citing new CEO Aldemir Bendine saying that asset sales and cuts to Petrobras's massive investment plans are on the cards. Continuación...