REFILE-LatAm credits give back gains on profit-taking

lunes 27 de abril de 2015 16:39 GYT

(Refiles to fix headline)

By Paul Kilby

NEW YORK, April 27 (IFR) - After a robust start, LatAm credits gave back some gains later in the day Monday as investors took profits in Brazilian names following a nice rally over the past week.

Petrobras - whose release of full-year results sparked the rally - saw its bonds run 8bp-14bp wider on Monday, with the 2024s and 2044s at 415bp-405bp and 455bp-445bp.

Bonds backed by drillships on charter to Petrobras also lost ground, with Odebrecht's 6.75% 2022s closing at around 86.25-87.25. The sovereign's 2025s also slid back to 100.75 after hitting a recent mid-market peak of 101.20 on Friday.

"There was a lot of profit-taking in Brazil," said a New York-based trader. "We are back (in some cases) to October levels before the Petrobras scandal, and so we are seeing people take chips off the table after the big run-off in Brazil."

Even so, most recently minted new issues were holding up relatively well, with YPF's new 10-year being quoted at 101.50-102.00 after pricing last week at 99.097.

Meanwhile miner Southern Copper's new 2025s and 2045s were spotted at 100.00-100.50 and 99.50-100.25 versus re-offer prices of 99.459 and 99.833, respectively.

The primary pipeline continues to grow, including an up to US$500m 10-year debut bond from JB y Compania, whose flagship brand Jose Cuervo tequila has strong name recognition and should attract investors seeking diversity in Mexican corporates.   Continuación...