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Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Wednesday, April 5 2000

Daily Brady Bond Trading Commentary

Early morning sentiment was negative as Europeans took emerging market debt, down along with their equity markets. Latin American bonds were sold and bids were lowered. Dealers focused FRBs, EIs and C-Bonds. The Mexican global bonds were also sold although all bonds were off their lows for the day as dealers took paper in mid-morning. We continue to note a close correlation between equity markets and emerging market bonds and will need to see some consolidation - or at least less volatility - before customers will be attracted back into taking positions. Funds dedicated to the asset class must remain invested but hedge funds and others have little inclination to invest until more rational conditions prevail. Greenspan's comments today seemed to indicate that weakness in the equity markets have not in any way changed his view that the US economy is continuing at an unsustainable pace and, as such, it seems unlikely that that the Fed will be deterred from further tightening.
This report was prepared by Credit Lyonnais Securities (USA) Inc. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to accuracy or completeness. Returns set forth in this report are estimates based on internal assumptions, and any changes in these assumptions may have material impact on such estimated returns. This is not a solicitation or any offer to buy or sell securities. We, our affiliates, and any officer, director or stockholder or any member of their families, may have a position in and may from time to time purchase or sell any of the above mentioned or related securities.
 

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