LatAm primary markets take breather after busy week

viernes 12 de junio de 2015 15:08 GYT

By Paul Kilby

NEW YORK, June 12 (IFR) - Latin American credit was taking a bit of a breather Friday after a relatively heavy supply week as US rate concerns and another bout of outflows in EM made investors cautious.

Volatility in the US Treasury market has yet to rein in the recent surge in LatAm bond sales, though it has complicated execution.

This week the region saw close to US$4bn in new supply, bringing the new issue tally to around US$7.6bn for June so far.

Yet while the primary markets have been active, supply remains sparse in historical terms and this continues to help provide a decent technical bid for LatAm assets, said bankers.

"We have seen an uptick in supply, but it has been slow for a long stretch so it is still pretty manageable," said a syndicate official.

Most recently minted new issues are also holding up, at least on a price basis. Banco Agricola's new 2020s saw a decent amount of volume Friday when it jumped to 101.75-102.25 after printing at par Thursday to yield 6.75%.

Meanwhile, Metro Lima's new secured 19-year bond has advanced a point to trade at 101.00-101.50 Friday, though the new 10-year from Brazilian aircraft manufacturer Embraer was back down at around reoffer at 99.70-100.00.

Mexican utility CFE was trading Friday at 101.00-101.50, up a couple of points from reoffer, though at a 295bp spread, it was trading essentially flat to where it came at 300bp over.   Continuación...