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Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Thursday, January 6 2000

Daily Brady Bond Trading Commentary

Thursday's sell-off in U.S. equities was confined to tech stocks, but a more than 1% jump in the Dow Jones Index did little for sentiment in emerging markets. Price action in Latin debt was poor as supply hit the secondary market while dealers were reluctant to hold paper. With the poor market conditions and Friday's employment report adding to nervousness, the "on again, off again" new issue from Brazil is apparently on hold for the time being. Although supply, interest rates and a correction in equities will keep prices under pressure, we still expect to see some cash put to work in emerging market debt at or below current levels. Spreads are reaching levels that provide cushion against interest rate hikes and that also favor a diversity argument.
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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