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Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Monday, April 24 2000

Daily Brady Bond Trading Commentary

A late recovery from another NASDAQ route did little to overcome the general tone of apathy in emerging debt markets Monday afternoon. The abundant optimism that rallied the market in early March, largely based upon Mexico's elevation to investment grade, seems to have all but disappeared for the moment. The high grade investor base has not been as eager to own Mexican debt as dealers had predicted, and the pessimism stemming from a stock market correction has spoiled many appetites for risk. Local economic fundamentals, if anything, remain on the mend in Latin America and Eastern Europe. But political risk will remain a factor as the summer approaches, with Presidential elections in Venezuela in a little more than a month, in Peru on June 25, and in Mexico the first week of July. While the incumbent parties hold the advantage in all three cases, the final results are very much in question. It is also not known how well the electorates will perceive the results in terms of fairness and transparency.
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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