LATAM WRAP-BTG, Venezuelan politics make for mixed session
By Paul Kilby
NEW YORK, Dec 4 (IFR) - LatAm credit put in a mixed performance on Friday as investors focused on BTG Pactual's fundraising efforts as well as potential fallout from Venezuela's elections this weekend.
BTG Pactual bonds were up several points on news that the embattled investment bank had accessed a R$6bn(US$1.6bn) credit line from the country's deposit guarantee fund.
Yet while such credit lines provide the bank with needed liquidity, the move also underscored the difficulties the bank faces in coming weeks.
"This is not an encouraging message; it shows they are under stress," said Jorge Piedrahita, CEO of broker Torino Capital. "(People) have been reassessing their exposure to BTG."
The bank's senior 2020s were being quoted at 67.00 on Friday, up about 12 points on the day but still multiple points weaker than the 73.00-75.00 seen on Monday.
This comes after a rollercoaster week for Brazilian asset prices, as investors reassess country risk in the face of impeachment proceedings against President Dilma Rousseff.
Efforts by the president's allies to prevent impeachment failed on Friday, when the Supreme Court rejected appeals to stop the process.
"There is a lack of buyers," said a New York-based trader. "We continue to see people reduce exposure to Brazil. There is no tolerance to take risk there." Continuación...