LATAM WRAP-Greek vote, commodity concerns keep lid on LatAm
By Paul Kilby
NEW YORK, July 14 (IFR) - Stronger US markets did little on Tuesday to inspire LatAm investors fretting about commodity prices and awaiting more certainty over Greece's latest bailout package.
Accounts are also reluctant to put money to work ahead of Federal Reserve Chairwoman Janet Yellen's Congressional testimony later this week.
While crude prices staged a comeback this afternoon following an initial drop due to the nuclear deal with Iran, concerns about how slower Chinese growth will impact the commodity exporting LatAm region has given investors pause.
"No one seems that confident about being long in this market, despite real money having cash," said a New York-based trader.
Bankers don't discount a possible drive-by deal this week, but for the most part they see borrowers waiting for more clarity on Greece before pulling the trigger.
That said, issuers are likely to move forward - though with higher new issue concessions - before the window closes in late summer and ahead of a possible US rate hike in September.
"The market has been undersupplied, and borrowers feel rate hikes will come post-summer, so if you have a window you should take advantage of it," one syndicate official told IFR.
In the secondary markets, bonds issued by Brazilian steelmaker CSN remained near this week's highs following news that it was looking to sell assets in an effort to reduce debt. Continuación...