LatAm mixed as Southern Copper comes to market
By Paul Kilby
NEW YORK, April 20 (IFR) - LatAm credit markets were off to a mixed start Monday, though the tone was supportive enough for Southern Copper Corporation to pull the trigger on a new 10s/30s bond sale.
Traders were reporting a largely quiet beginning to the week, with bonds issued by Brazil's beleaguered oil company Petrobras tightening between 2bp-5bp today amid light volumes.
News that it had clinched R$9.5bn (about US$3.11bn) in financing from Banco do Brasil, Caixa and Bradesco was lifting prices ahead of audited results expected out this week.
The company's 2024s and 2044s were opening at around 469bp-461bp and 492bp-483bp, though some market participants doubt there is a tremendous amount of upside from here.
"We look further into the future and see no compelling reason to hold PETBRA other than for short-term trades," Jorge Piedrahita, CEO of broker Torino Capital, wrote to clients this morning. "We would sell into strength."
Elsewhere in Brazil's corporate space, bonds from Odebrecht, one of several construction companies embroiled in the Petrobras corruption scandal, were off recent highs on some profit-taking but still well supported.
Its 7.125% 2042s were trading at 88.00, off a recent high of 91.50 but well above the 66.125 level seen in early February.
The 5.875% 2022s issued by Schahin Oil and Gas were stabilized in the low 40s Monday morning. Its parent company said Friday that 28 of its subsidiaries would seek bankruptcy. Continuación...