EM LATAM CREDIT: MNI EM Credit Market Wrap - LATAM (04 Feb)
Source: BBG
Measure Level Δ DoD
5yr UST 4.3% -4bp
10yr UST 4.5% -5bp
5s-10s UST 19.0 -0bp
WTI Crude 72.6 -0.6
Gold 2842 +26.8
Bonds (CBBT) Z-Sprd Δ DoD
ARGENT 4 1/8 07/09/35 707bp +5bp
BRAZIL 6 1/8 03/15/34 258bp -2bp
BRAZIL 7 1/8 05/13/54 350bp -1bp
COLOM 8 11/14/35 378bp +8bp
COLOM 8 3/8 11/07/54 460bp +6bp
ELSALV 7.65 06/15/35 401bp +3bp
MEX 6 7/8 05/13/37 265bp +1bp
MEX 7 3/8 05/13/55 323bp +3bp
CHILE 5.65 01/13/37 151bp +3bp
PANAMA 6.4 02/14/35 325bp -5bp
CSNABZ 5 7/8 04/08/32 545bp +6bp
MRFGBZ 3.95 01/29/31 300bp +1bp
PEMEX 7.69 01/23/50 649bp +5bp
CDEL 6.33 01/13/35 201bp +0bp
SUZANO 3 1/8 01/15/32 196bp -2bp
FX Level Δ DoD
USDBRL 5.76 -0.05
USDCLP 972.62 -15.33
USDMXN 20.5 +0.13
USDCOP 4160.19 -0.50
USDPEN 3.71 +0.01
CDS Level Δ DoD
Mexico 126 (4)
Brazil 174 (5)
Colombia 202 (1)
Chile 60 (0)
CDX EM 97.52 0.07
CDX EM IG 100.97 0.04
CDX EM HY 93.76 0.08
Main stories recap:
A bounce in global Equities and a rally in US Treasuries of 3-5 bps invited renewed EM primary market supply with Korea Electric Power and Saudi Arabian mining company Ma’aden announcing investor calls followed by proposed new issues while in Latam we saw Mexican independent electricity generator Saavi and Mexican copper miner Minera Mexico planning to tap the market. In the secondary market, price action was generally muted and lagged the US Treasury rally, so spreads widened. Ecuador bonds moved higher again as the market anticipated a win by incumbent Naboa in this Sunday’s Presidential election as he was seen as more likely to institute meaningful reforms. Panama bonds also outperformed with the Panama government said to be considering cancellation of its contract with a Chinese based company that operates ports near the Canal which would allay some US Concerns and reduce the threat of Panama losing a meaningful contributor to their GDP.