LatAm primary quiet ahead of hoped for September reset; Petrobras active, flat to higher

By Rebecca Melvin

New York, Aug. 24 – Latin America’s primary market remained quiet with Brazil, Argentina and Mexico on the sidelines for the time being as market players watch for a key issuer to step up to show that there is a viable market, a New York-based market source said on Friday.

September is the second most popular month of the year to price a deal, so there may be some things in the works. The issuers that are likely to reopen the primary market include countries like Ecuador, Paraguay or others that are away from those that are sidelined, a market source said.

The selloff in Brazil’s existing bonds was curtailed on Friday with the real modestly improved from Thursday. Meanwhile Petroleo Brasileiro SA bonds traded very actively on Friday amid reports that its Replan oil refinery, its largest in Brazil, was set to partially restart following a fire shut operations at the refinery on Monday.

Petrobras’ 5¾% notes due 2029 traded at 87 for a yield of 7.575% on Friday and as high as 89, which was flat to higher from Thursday.

Petrobras’ 6¼% notes due 2024 were also especially active and seen at 97 to 98.5, which was also flat to higher.

The Petrobras long-dated 7¼% notes due 2044 were moving up to 92.5 to 92.9 last from 91.75 earlier in the session.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.