10 de abril de 2015 / 15:08 / hace 3 años

LatAm credit inches wider but remains well bid

NEW YORK, April 10 (IFR) - Spreads on Latin American credits were slightly wider on Friday after a strong week but the region remained well bid with investors looking for opportunities to put money to work.

“My sense is that dealers are short and they don’t want the market to go up, but investors still have a lot of cash and they really need yields,” said Rodrigo Covian, head of fixed-income at Bulltick in Miami.

This comes after emerging market fixed-income funds enjoyed another week of inflows, with close to US$400m coming into the asset class the week ending April 8, according to Unicredit citing EPFR data.

In a reversal of weeks past, local currency funds also had some US$135.89m rolling into the asset class, while hard currency funds took in US$240.92m.

Sovereigns were slightly wider in spread terms as the yield on the 10-year Treasuries hovers under 2%.

Brazil 2025s were around 100.25-100.375, while Mexico 2025s at 102.85 mid market. Petrobras 2024s at 470-460bp.

A report in local newspaper Folha de S.Paulo saying that Petrobras calculating corruption losses at between R$5bn-R$6bn (US$1.6bn-US$2bn) had little impact on price action, with the short-end still well supported by retail buying.

Those calculations were based on 3% of the amount Petrobras overpaid due to kickbacks, according to Reuters, and are well below the US$20bn plus in write-downs some analysts had calculated earlier this year.

PIPELINE

ACI Airport Sudamerica, the controlling shareholder of the concessionaire of Uruguay’s Carrasco airport, has mandated BAML and Nomura to arrange investor meetings.

The meetings will take place in New York and Santiago on April 13, Boston and New York on April 14 and London and Los Angeles on April 15. A potential senior secured 144A/Reg S transaction backed by future dividends received in connection to a long-term airport concession contract may follow.

ACI Airport Sudamerica is controlled by Corporacion America Airports, which has 52 airports under management.

BBVA Colombia has hired BBVA Securities and Morgan Stanley to arrange investor meetings ahead of a potential US dollar-denominated Tier 2 subordinated bond offering.

The meetings are taking place in Los Angeles today, and will continue in London on April 13, Boston on April 14 and New York on April 15.

Pacific Rubiales, the largest private oil producer in Colombia, has kicked investor meetings through Bank of America Merrill Lynch, Citigroup and HSBC.

The company is in Switzerland today, and next week will head to New York on April 13 and 14, Boston on April 15, Santiago on April 30, Los Angeles on May 4 and Miami on May 6. (Reporting By Paul Kilby; editing by Shankar Ramakrishnan)

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