CORRECTED-Shaky start for LatAm over Brazil, crude prices

lunes 16 de marzo de 2015 12:15 GYT

(CORRECTS to add BBVA, HSBC as joint bookrunners for ColTel)

By Paul Kilby

NEW YORK, March 16 (IFR) - With crude prices hitting recent lows and the Petrobras scandal overshadowing a whole swath of Brazilian credits, LatAm bond markets were largely starting on a back foot Monday morning.

Brazilian bonds were under pressure as unease over the investigation at Petrobras continued to weigh on sentiment and to spill over into the political arena at a time when the government is trying to push through key fiscal measures.

Protest on Sunday brought close to a million Brazilians out in the streets in the latest expression of frustration over the country's flagging economy and the extent of the scandal.

Virtually every bond in the Brazilian corporate space has been touched by the affair, providing accounts with little comfort about investing in the country overall.

"The number of companies directly or indirectly involved in the corruption scandal is almost the whole market," said a New York-based trader. "When you look at all the companies involved you have like 30 (outstanding bond) issues."

Meanwhile the Real was off recent highs but still trading at 3.22 against the dollar this morning, while spreads on Petrobras bonds started the day about 10bp wider.

The oil entity's 2024s and 2044s were opening at 570bp-560bp and 550bp-540bp, respectively.   Continuación...