LatAm enjoys another solid start as Cemex climbs

viernes 27 de febrero de 2015 12:11 GYT

By Paul Kilby

NEW YORK, Feb 27 (IFR) - LatAm credit markets enjoyed another strong start on Friday with the exception of the Brazilian sovereign, which continues to lag as investors fret about the fallout from the Petrobras corruption scandal.

"Credit feels good," said a New York based trader. "Weak Chigago manufacturing data has created a bid for Treasuries and that has created a bid for high grade LatAm."

Successful deals from Mexico and cement producer Cemex bode well for what is expected to be a busier month in the primary markets, where largely sovereign and quasi sovereign credits have been active.

With earnings season in full swing, several companies should soon be ready to move forward with bond trades, say bankers.

Cemex new USD 2025 was trading up at 100.75-101.00 this morning after being priced at 99.98 to yield 6.125%. This comes despite a 60bp tightening from initial price talk yesterday.

The company's euro-denominated eight-year non-call four was also advancing to be quoted at 100.50-100.70 versus a reoffer of par.

Meanwhile, Mexico, which also returned to the euro market yesterday, was watching its new 2024s and 2045s inching higher to hit 99.95-100.25 and 98.95-99.40 after pricing at 99.486 and 98.199, respectively.

Brazilian corporates remain well bid despite Moody's demotion of oil entity Petrobras to junk last week through a double-notch downgrade to Ba2.   Continuación...