Brazil in focus as Marfrig rallies, Odebrecht weighs

lunes 22 de junio de 2015 14:17 GYT

By Paul Kilby

NEW YORK, June 22 (IFR) - A rally in beef producer Marfrig's bonds bucked the trend Monday in Brazil, where corporates remained under pressure following the arrest of Odebrecht's CEO last week.

Odebrecht bonds suffered another day of price swings amid speculation about the impact of the arrest in connection with the kickback investigation at Petrobras.

Illiquidity in the market exacerbated price movements as investors sought to gain from dramatic price drops in the bonds, said one trader.

"Clearly someone was pushing down Odebrecht bonds," he said. "It is easy to push them down, as no one is going to lift you."

But Odebrecht bonds were off their lows by early afternoon, with the 2029s being quoted at 79.00.

It was a similar story with Odebrecht bonds backed by drillships on charter to Petrobras, with the 6.625% 2022s seen in the low to mid 70s after closing Friday around 78.00-79.

The arrest at Brazil's largest construction firm has reignited concerns about the so-called "Car Wash" scandal - and the possible involvement of other top executives and politicians.

Despite such worries, Brazilian beef name Marfrig saw its bonds rally on Monday as investors cheered the deleveraging potential behind its sale of UK subsidiary Moy Park.   Continuación...