LatAm credits drift in well-bid market

lunes 2 de marzo de 2015 10:53 GYT

By Paul Kilby

NEW YORK, March 2 (IFR) - LatAm credit markets got March off to a quiet but well-supported start on Monday, following one of the largest inflows into EM funds in almost a year.

EM debt funds saw a net inflow of US$1.14bn last week, according to data from EPFR, underscoring better technicals as LatAm investors remain starved of new supply.

"This was the largest inflow since May 2014 and looks like a reversal of the outflows from November-January," Siobhan Morden, head of Latin America strategy at Jefferies, wrote this morning.

According to EPFR, the buyside has also been adding exposure to some of the more battered credits in recent months, with Brazilian funds posting their largest inflows last week since early January.

Meanwhile last week's new issues continue to hold their own.

Mexican cement company Cemex's new dollar-denominated 2025 is trading at 100.625-100.875 versus a 99.98 reoffer. Its euro-denominated 8NC4 was also well bid at 100.375-100.625 after pricing at par last week.

It was a similar story for the sovereign after Mexico returned to the euro market last week with a EUR2.5bn dual-tranche bond sale.

The new 30-year was quoted this morning at 100.15-100.25 versus a reoffer of 98.199, while the nine-year was spotted at 100.20-100.40 after pricing last week at 99.486.   Continuación...