EM LATAM CREDIT: MNI EM Credit Market Wrap - LATAM (06 Feb)
Source: BBG
Measure Level Δ DoD
5yr UST 4.3% +2bp
10yr UST 4.4% +2bp
5s-10s UST 16.0 -1bp
WTI Crude 70.5 -0.5
Gold 2857 -10.6
Bonds (CBBT) Z-Sprd Δ DoD
ARGENT 3 1/2 07/09/41 791bp -2bp
BRAZIL 6 1/8 03/15/34 256bp -0bp
BRAZIL 7 1/8 05/13/54 348bp -1bp
COLOM 8 11/14/35 380bp -0bp
COLOM 8 3/8 11/07/54 458bp -1bp
ELSALV 7.65 06/15/35 395bp -8bp
MEX 6 7/8 05/13/37 262bp -1bp
MEX 7 3/8 05/13/55 320bp -1bp
CHILE 5.65 01/13/37 149bp -1bp
PANAMA 6.4 02/14/35 333bp +2bp
CSNABZ 5 7/8 04/08/32 543bp -5bp
MRFGBZ 3.95 01/29/31 295bp -5bp
PEMEX 7.69 01/23/50 644bp -1bp
CDEL 6.33 01/13/35 201bp -2bp
SUZANO 3 1/8 01/15/32 185bp -8bp
FX Level Δ DoD
USDBRL 5.76 -0.04
USDCLP 963.28 -8.07
USDMXN 20.5 -0.13
USDCOP 4137.37 -38.68
USDPEN 3.72 0.00
CDS Level Δ DoD
Mexico 125 (1)
Brazil 174 0
Colombia 199 (3)
Chile 60 (0)
CDX EM 97.55 (0.00)
CDX EM IG 100.98 0.00
CDX EM HY 93.80 0.00
Main stories recap:
Spreads generally tightened across EM globally with US Treasuries in a holding pattern ahead of the US labor report tomorrow. The Asia EM primary market was relatively subdued with only a Korea Electric 3-year deal while CEEMEA heated up with 3 new deals from Saudi Arabia’s miner MAADEN, West Africa’s multilateral development bank BOAD and UAE’s SHJGOV. Latam followed through with a very popular USD650mn for Brazil jet maker Embraer, a drive-by 12-year print for the Republic of Uruguay and a senior unsecured for Central American/Caribbean telecom Cable & Wireless LTD. Embraer had a good day in secondaries as well, with 2030 bonds tightening 10 bps. Embraer bonds were helped by news of a huge sale of executive jets to Flexjet in a deal estimated at USD7bn. Bonds of Brazil fuels distributor and sugarcane processor Raizen tightened 9-14 bps across the curve with news reports that the company was considering a capital raise.
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