LatAm credit markets extend rally

jueves 9 de abril de 2015 11:31 GYT

By Paul Kilby

NEW YORK, April 9 (IFR) - Latin American credit markets were enjoying a strong bid Thursday as higher crude prices provide support while investors grow more comfortable with Brazilian risk.

"The market is very firm," a US-based investor told IFR. "There are not a lot of grenades out there to trip the market up and a lot of the recent news out of Brazil has been supportive."

There are heightened expectations that Brazil's Petrobras will soon release audited results. Local paper Folha de S.Paulo said Petrobras will publish financials before April 20.

The company's 2024s were being quoted 465bp-440bp Thursday morning, marking another 20bp tightening on the day.

It has been similar story for the sovereign's 2025s, which were being quoted at 100.95-101.15 after a good seven-point rally since mid-March.

Brazil's sovereign credit default swaps have also tightened about 15bp this week and some 60bp since mid-March.

"I guess people are getting more comfortable with Brazil," said Klaus Spielkamp, head of fixed-income sales at Bulltick.

Mexican names are also in demand, with the sovereign's new euro-denominated Century bond catching a strong bid after six points today.   Continuación...