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Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Thursday, February 24 2000

Daily Brady Bond Trading Commentary

Emerging markets debt posted mixed results Thursday. Prices have remained stable in the face of volatility in U.S. bonds and stocks, and withstood US$1 billion in new supply from Brazil today. The new 30-year issue, which was priced attractively relative to Brazil's slightly inverted yield curve at the long end , was reportedly 2.5 times over-subscribed and tightened in secondary trading. Still, even a small issue in the current environment is likely to leave the market with a bit of a hangover. We continue to view local fundamentals as improving and see pullbacks based on external volatility as good buying opportunities. Capital gains may be limited in the short-term, but there is still no shortage of cash to eventually lead us to new highs.
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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