Argentina outperforms in weaker LatAm bond market

viernes 20 de febrero de 2015 12:20 GYT

By Paul Kilby

NEW YORK, Feb 20 (IFR) - Latin American credit markets were ending the week slightly wider but well supported despite uncertainty over the outcome of negotiations between Greece and its euro-zone creditors.

"The whole Greece situation is uncertain, but there is no panic," said a New York based trader. "Flows are light and if anything we are seeing better buying on weakness."

Argentina is proving to be the out performer Friday after US court mediator Daniel Pollack released a statement on Thursday saying that holdout creditors had recently renewed their offer to negotiate with the sovereign.

Pollack's statement suggested that litigant investors had expressed a willingness to accept no cash upfront as part of the settlement.

The country's defaulted bonds were up another 3/4 of a point this morning on the news, though some market participants thought the rally overblown.

"People took Pollock's comments too positively," said a broker. "It was always on the table that holdouts would accept bonds as means of payment. It is just an excuse for a trend that continues."

Dollar discounts were being quoted earlier at 98.00-99.00, up from a 97.25 closing level yesterday.

Meanwhile, the region's other high-beta sovereign credit, Venezuela, have been inching higher in late morning trading as Brent crude climbs back to above US$60 a barrel. The sovereign's 2022 were being quoted at 47.75-48.75.   Continuación...