Ecuador notes up; Venezuela weaker as U.S. stops trading PDVSA bonds; Suzano prices tap

By Rebecca Melvin

New York, Jan. 29 – The Republic of Ecuador’s newly priced 10¾% notes traded up out of the chute to about 101.10 in the early going on Tuesday after the sovereign priced $1 billion of 10-year notes (rating: //B-) at par. But by late morning they faded back by about 0.75 point and were last 100¼ bid, 100.40 offered, according to a New York-based market source.

Also in the Latin America space, traders marked a sudden standstill in PDVSA after the United States announced new sanctions against the company on Monday that prohibit PSVSA’s transactions with people in the United States.

A U.S.-based trader of these bonds said he had no idea where the pricing is for PDVSA as the market waits for more clarification of the sanctions. But until further notice, he is not allowed to trade the notes, he said.

Meanwhile the Venezuela sovereign bonds lost about 0.5 point to 0.75 point on Tuesday, with the Venezuela 2027 bonds as well as the 2026 notes and 2022 notes seeing decent volume and trading between 32 and 34.

Also from Latin America, Brazil’s Suzano Papel e Celulose SA priced on Tuesday a $750 million tap of its 6% senior notes due 2029 (rating: /BBB-/) to yield 5.465%, according to a company release.

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