LatAm credit ends off intra-day highs after active week

viernes 24 de abril de 2015 16:18 GYT

By Paul Kilby

NEW YORK, April 24 (IFR) - LatAm credits were coming off intraday highs Friday as investors took some profits after a decent run-up following the release of Petrobras's full-year financials.

"Things were a bit overbought so people are squaring off positions ahead of the weekend," said a New York-based trader.

Brazil 2025s were trading at a mid-market price of around 100.90 late afternoon after reaching 101.10-101.50 in the morning. Still that marks a good 1.50 point climb from levels seen at the beginning of the week.

Spreads on debt issued by Petrobras continued to hold firm going into the end of the session, with 2024s and 2044s being quoted at 400bp and 440bp, respectively.

Elsewhere, the recently minted 10-year issued by Argentine oil company YPF was enjoying further positive price action in the secondary market to hit a cash price of around 101.50, a good point up from a reoffer of 99.097.

Overall, the tone remains positive for the region, where on Friday Paraguay became the latest issuer to tap the market with a US$280m reopening of its 4.625% 2023, which priced at 103.11 to yield 4.15%, just 3bp wide to secondary levels.

"It is a small deal, there has been little supply (this year), and people like Paraguay," said a syndicate manger.

This comes after the region enjoyed a decent spike in supply after Argentina's YPF, miner Southern Copper and Chilean utility Guacolda together raised some US$5.54bn this week.   Continuación...