EM LATAM CREDIT: MNI EM Credit Market Wrap - LATAM (13 Feb)
Source: BBG
Measure Level Δ DoD
5yr UST 4.4% -8bp
10yr UST 4.5% -9bp
5s-10s UST 13.8 -1bp
WTI Crude 71.4 +0.1
Gold 2928 +24.3
Bonds (CBBT) Z-Sprd Δ DoD
ARGENT 3 1/2 07/09/41 816bp -1bp
BRAZIL 6 1/8 03/15/34 253bp -3bp
BRAZIL 7 1/8 05/13/54 341bp -2bp
COLOM 8 11/14/35 364bp -2bp
COLOM 8 3/8 11/07/54 444bp -0bp
ELSALV 7.65 06/15/35 388bp +13bp
MEX 6 7/8 05/13/37 252bp -5bp
MEX 7 3/8 05/13/55 309bp -5bp
CHILE 5.65 01/13/37 144bp -0bp
PANAMA 6.4 02/14/35 323bp -4bp
CSNABZ 5 7/8 04/08/32 544bp +6bp
MRFGBZ 3.95 01/29/31 275bp +1bp
PEMEX 7.69 01/23/50 631bp -2bp
CDEL 6.33 01/13/35 192bp +1bp
SUZANO 3 1/8 01/15/32 178bp -2bp
FX Level Δ DoD
USDBRL 5.77 +0.01
USDCLP 945.87 -6.48
USDMXN 20.4 -0.09
USDCOP 4139.80 -27.80
USDPEN 3.72 +0.00
CDS Level Δ DoD
Mexico 118 (2)
Brazil 168 (2)
Colombia 183 (4)
Chile 53 (1)
CDX EM 97.78 0.09
CDX EM IG 101.19 0.07
CDX EM HY 94.08 0.14
Main stories recap:
The EM Asia primary market reawakened with deals from Hubei and Taiwan Cement while secondary bond spreads widened. CEEMEA saw a mandate from Emirates and secondary market spreads broadly flat, though once again Ukraine bonds rallied while Israel bonds widened. Latam was focused on secondary trading with benchmark bonds up in price but generally lagging the 5-10 bps rally in Treasury yields. Some components of the PPI inflation data were reported better than expected leading some economists to lower their estimate for core PCE, regarded as the Federal Reserve’s preferred inflation gauge. MEX outperformed today while we saw profit taking in ELSALV and Ecuador bonds break to new lows for this year as people contemplated a victory for Correa protégé Luisa Rodriguez in the April 13 Presidential election runoff.
