13 de octubre de 2015 / 18:28 / en 2 años

LATAM WRAP-LatAm credit markets give back some gains

NEW YORK, Oct 13 (IFR) - Brazilian credits were underperforming after a decent rally earlier this month on news that the speaker of the country’s lower house, Eduardo Cunha, would soon start considering requests to impeach President Dilma Rousseff.

The 2024s issued by Brazilian oil company Petrobras were trading a point weaker at 78.50-79.50, while the sovereign’s 2025s were down a point at 90.00.

“We have had a nice rally and people are taking profits,” said a trader. “All eyes are on Brazil and if they bring this impeachment (of the president) to the table.”

Elsewhere disquiet over China’s economy continues to weigh on bonds issued by commodity exporters.

Lower than expected decline in Chinese exports in September combined with a sharp decline in imports did little to clarify the picture over the health of the Asian nation’s economy.

The new 2025s issued by Chilean copper giant Codelco were trading some 7bp wider this morning 267bp-257bp but still tighter than recent wides of 330bp-315bp, according to a second trader.

Meanwhile, the 2022s issued by Brazilian iron ore miner Vale were some 10bp wider at 415bp-405bp.

Analysts are seeing little upside for many emerging markets countries as they adjust to tighter funding conditions and less buoyant economic growth.

“It’s difficult to expect a shift towards a full recovery on emerging markets under the constraints of still low growth, low commodity prices and deleveraging from emerging to developed markets,” wrote Siobhan Morden, head of LatAm debt strategy at Jefferies.

Still bankers are not discounting the possibility of bond sales this week.

“The market did feel better over the last week and a half, so it wouldn’t surprise me to see borrowers looking at the market,” said a syndicate banker.

The 2025s issued by state-owned trade bank Bancomext - the only LatAm borrower to tap the market this month - were being quoted at a spread of 234bp, about 3bp tighter to where it priced on October 6.

The price on the bond reached as high as 100.65, but was trading today at around 99.95 versus a reoffer price of 99.719.


Mexican white-goods manufacturer Controladora Mabe has finished investor meetings through Barclays, Bank of America Merrill Lynch, Citigroup and JP Morgan. Ratings are BB+/BB+.

Mexican real-estate investment trust Fibra Uno has completed meetings with investors through Bank of America, Credit Suisse, HSBC and Santander.

Terrafina, another Mexican REIT, has finished meeting accounts as it markets a potential US$400m-$500m bond offering. The borrower mandated Barclays and Citigroup as lead managers, with Itau coming in as co-manager. Expected ratings are Baa3/BBB-. (Reporting By Paul Kilby; Editing by Shankar Ramakrishnan)

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