Investors digest ECB news; oil prices take spotlight; Lat-Am fares well; Panama, Koc trade

By Christine Van Dusen

Atlanta, March 11 – Emerging markets investors were bracing for “high volatility” on Friday, following the European Central Bank’s Thursday announcement of additional stimulus, as oil prices once again took center stage.

Even with this uncertain global backdrop, Latin American assets saw their spreads move steadily tighter on Friday, with Brazil’s five-year credit default swaps closing at 385 basis points from 392 bps and Mexico’s moving to 162 bps from 171 bps.

“Cash prices finish mixed on the day, with some curves unchanged and others powering higher,” a New York-based trader said. “The trend seemed to be recent outperforming cash bonds underperformed today and laggards caught a bid.”

In trading, the new issue of notes from Panama – 3 7/8% notes due 2028 that priced this week at 99.015 to yield 3.979%, or Treasuries plus 205 bps – moved to 99 bid, 99.20 offered on Friday.

Buenos Aires’ new $1.25 billion in 9 1/8% amortizing notes due March 16, 2024 that priced this week at 98.741 to yield 9 3/8% traded up two points into the end of the week, a trader said.

And Turkey-based Koc Holding AS’ new 5¼% notes due 2023 traded on Friday at 99.40 bid, 99.80 offered after pricing this week at 99.135 to yield 5.4%, a trader said.

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