NEW YORK, July 6 (IFR) - Latin American credits neared the end of Monday’s volatile session close to flat, recovering late in the day from some widening earlier caused by the ongoing drama in Greece.
But while that indicated a benign approach to the Greek woes, bankers said, headline risk remains too big for LatAm borrowers to come to market with new deals.
“It’s not like things are gapping 50bp, but there is quite a lot of uncertainty,” one syndicate banker in New York told IFR.
“I would assume people will take it day-by-day.”
Argentinian bonds meanwhile were holding steady around last week’s closing levels, as local election results viewed as a setback for outgoing President Christina Kirchner offset the worries about Greece.
“It is telling that, on a day like today, Argentina is holding up,” said Jorge Piedrahita, CEO of brokerage Torino Capital.
A close ally of business-friendly presidential candidate Mauricio Macri won the first round of mayoral elections in the City of Buenos Aires by ample margin, although he failed to secure enough votes to avoid a run-off later this month.
In the province of Cordoba, a Peronist candidate who also opposes President Fernandez became the new governor. Candidates close to Fernandez finished both races in third place. (Reporting by Davide Scigliuzzo; Editing by Shankar Ramakrishnan and Marc Carnegie)