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Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Thursday, April 6 2000

Daily Brady Bond Trading Commentary

After the last few days, Emerging Market debt had begun to look oversold and price action today built on yesterday's firmer tone. Equity markets also followed the upward bias as investors bought. Brazilian industrial production figures were higher than predicted and gave credence to the view that economic activity is picking up despite the occasional weak monthly figure. Rumors were that Argentina is in the market to do a bond exchange and retiring more Brady bonds and, perhaps, some BOCONS. Overall we see the markets still dealer driven and, given that traders had to take some paper in the sell-off, we believe that the upside will be capped as dealers take profits as prices rise. The correlation with the US equity markets seems to be firmly in place and we will continue to see volatility so long as this continues .
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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