NEW YORK, Feb 26 (IFR) - Latin American credits ended Thursday’s busy trading session better bid, with most sovereigns closing tighter in spread as US Treasuries sold off.
With the exception of Brazilian bonds, which were ending the day some 6bp to 8bp wider, Peru and Uruguay saw their spreads tighten by 3bp to 5bp, said a sovereign bond trader in New York.
“Everything except for Brazil is trading okay,” said a sovereign bond trader in New York.
Argentine bonds and warrants were also in strong demand, after the banks hired to sell a reopening of its Bonar 2024s decided to put the deal on hold following a US court order to hand over documents about the sale.
The existing 2024, which on Wednesday slid one point in expectation of new supply, was back to 105.40-105.75, close to recent highs.
“I guess people are not expecting new supply to come any time soon,” said the trader.
Among corporates, Petrobras kept losses contained as its curve ended the day just 2bp to 3bp wider in spreads on average, according to a second New York trader.
“It’s been a busy day in general and people are still demanding stuff,” he said. “The market was strong.”
Primary activity appears to have picked up with Mexico returning to the euro market with a EUR2.5bn issue of nine and 30-year bonds and cement company Cemex selling a combined US$1.4bn-equivalent in US dollars and euros.
The sovereign priced a EUR1.25bn of 2024s and EUR1.25bn of 2045s at spreads over mid-swaps of 110bp and 190bp respectively. The notes will carry coupons of 1.625% and 3%.
Cemex raised US$750m through a new 2025 priced at a yield of 6.125% and EUR550m via an eight-year non-call four note priced to yield 4.375%.
Mexican telco America Movil is meeting investors in Europe and the US this week as it seeks to market a global peso trade through BBVA, Citigroup, Credit Suisse, Deutsche Bank, HSBC and Morgan Stanley. Meetings will wrap up on Friday.
Mexican media company TV Azteca is bringing to market a rare project bond related to the development of the Andean country’s fiber optic network.
Costa Rica has chosen Deutsche Bank and HSBC as lead managers on an up to US$1bn international bond sale.
Panama filed with the SEC to sell up to US$3.04bn in debt, raising expectations that the sovereign could soon come to the international bond market. (Reporting by Davide Scigliuzzo; Editing by Marc Carnegie)