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Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Monday, April 17 2000

Daily Brady Bond Trading Commentary

Emerging markets debt prices rebounded from a poor open Monday but continue to take direction primarily from U.S. equities. Volumes remain thin, with the exception of Brazil C-Bonds, indicating that dealer positioning is the primary driver of flows. Argentina reported industrial production (advance figure) growth of 4% y/y for March, slightly disappointing market expectations but maintaining a positive trend nonetheless. Brazil saw a small improvement in its current account deficit in March versus a year earlier, though the R$1.88 billion reading was larger than the R$1.25 billion figure for February. The COPOM begins a two-day meeting on Tuesday, and expectations are for it to keep the selig rate steady at 18.50%. The probability of a Fed tightening next month, and again in June, is adding to downward pressure on EM debt prices.
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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