LATAM WRAP-China rate cuts buoy LatAm credit prices
By Paul Kilby
NEW YORK, Oct 23 (IFR) - A surprise rate cut in China and the prospects of more monetary easing in Europe spurred some risk-on buying in LatAm credit market on Friday.
"Three major central banks are easing - Bank of China, the ECB and the Bank of Japan," said Jorge Piedrahita, CEO of brokerage Torino Capital. "That provides a good backdrop for risk-on trades."
Brazil bond prices continued to move higher on Friday despite concerns about the country's fiscal accounts, the threat of possible impeachment proceedings and the prospect of further downgrades.
The sovereign's 2025s have jumped about 75 cents to hit a mid-market price of 88.30, or some 1.5 points off the weekly low seen on Wednesday.
While buying activity remains somewhat muted, some investors were looking to gain exposure to stronger names in the country's protein and pulp and paper sectors, said one US-based trader.
The 2024s issued by Brazilian pulp and paper company Fibria were up one point at 98.50-99.50, while beef company JBS's 2024s had advanced about half a point to hit 102.25-103.25.
Elsewhere Argentina assets have been catching a decent bid ahead of Sunday's presidential elections.
Investors were largely shrugging off a US district judge's ruling on Thursday favoring "me-too" creditors suing the country and instead were betting on an improving political landscape. Continuación...