Risk appetite wanes after G-20 meeting; Lat-Am corporates perform; Yapi Kredi advances deal

By Christine Van Dusen

Atlanta, Feb. 29 – Risk sentiment on Monday was soggy after the G-20 meeting, which did not yield firm plans for addressing market conditions, but Brazil still managed to perform – even amid continued political turmoil in the country.

Overall, emerging markets assets opened “on the back foot,” a trader said.

Latin American corporates continued to move higher throughout the session, a New York-based trader said.

“I don’t believe there are any credits that are actually lower from Friday, including some of the Brazilian corporates that were downgraded late Thursday,” he said. “Colombian banks, which had been lagging this uptrade, are now finding their way higher the last three sessions.”

Banks from Mexico moved higher, he said.

Sovereign spreads from Latin America closed on Monday slightly wider “as morning strength turned into afternoon weakness, which seemed to coincide with a reversal in equity markets,” a trader said.

Brazil’s five-year credit default swaps spreads finished at 460 bps from 458 bps, while Mexico’s was unchanged at 198 bps.

High-yielders from Latin America were mixed on Monday, with Venezuela’s 2027s down to 40.15 from 41.25, PDVSA’s 2017s at 49 from 49.75 and Argentina mostly unchanged.

In deal-related news, Turkey’s Yapi ve Kredi Bankasi AS (Yapi Kredi) held an investor call on Monday morning for a dollar-denominated issue of notes, a market source said.

© 2015 Prospect News.
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