EM LATAM CREDIT: MNI EM Credit Market Wrap - LATAM (31 Jan)
Source: BBG
Measure Level Δ DoD
5yr UST 4.4% +4bp
10yr UST 4.6% +4bp
5s-10s UST 20.3 +1bp
WTI Crude 72.5 -0.3
Gold 2798 +3.6
Bonds (CBBT) Z-Sprd Δ DoD
ARGENT 4 1/8 07/09/35 688bp +3bp
BRAZIL 6 1/8 03/15/34 263bp -1bp
BRAZIL 7 1/8 05/13/54 352bp -4bp
COLOM 8 11/14/35 372bp +1bp
COLOM 8 3/8 11/07/54 453bp +0bp
ELSALV 7.65 06/15/35 400bp -4bp
MEX 6 7/8 05/13/37 265bp -2bp
MEX 7 3/8 05/13/55 323bp -4bp
CHILE 5.65 01/13/37 147bp +0bp
PANAMA 6.4 02/14/35 333bp -6bp
CSNABZ 5 7/8 04/08/32 533bp -4bp
MRFGBZ 3.95 01/29/31 296bp -4bp
PEMEX 7.69 01/23/50 644bp -11bp
CDEL 6.33 01/13/35 198bp -3bp
SUZANO 3 1/8 01/15/32 195bp -6bp
FX Level Δ DoD
USDBRL 5.83 -0.04
USDCLP 980.82 -3.72
USDMXN 20.7 -0.08
USDCOP 4208.52 +53.07
USDPEN 3.73 +0.01
CDS Level Δ DoD
Mexico 131 4
Brazil 179 (0)
Colombia 202 5
Chile 60 1
CDX EM 97.44 (0.04)
CDX EM IG 100.93 (0.04)
CDX EM HY 93.73 (0.12)
Main stories recap:
Like Asia and CEEMEA, the primary market in Latam went quiet after a busy week and we were left to focus on secondaries. US Treasuries sold off in the afternoon after the White House said it intended to go ahead with planned tariffs on Mexico, Canada and China but Latam benchmark prices were mostly unchanged, so spreads tightened. Brazil conglomerate Cosan (CSANBZ; Ba2neg/-/BB) bond spreads tightened 15-30 bps after the company announced a partial tender for three bonds using the proceeds from its sale last week of its stake in Vale. Brazil chemical company Braskem (BRASKM; Ba2neg/BB+neg/BB+neg) bonds widened out 7 bps as they announced increased provisions for the environmental disaster in Alagoas.
