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 Credit Lyonnais Securities (USA)

Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Friday, January 21 2000

Daily Brady Bond Trading Commentary

The United Mexican States squeezed out a US$1.5 billion, 10-year issue ahead of the weekend. In an impressive feat of last minute marketing, the deal came right on the heals of Brazil's 20-year bond and was ultimately priced at 315 bps over treasuries, tighter than pre-sale indications. The success of the two sovereign deals this past week may help to rekindle interest in Latin debt, which has lagged soaring equity markets. We continue to view an inevitable dollar issue from Argentina as a true test of sentiment, and there remains the possibility that the market will see such a deal in the next two weeks.

Ecuador's debt tumbled at the end of the week as thousands of indigenous protestors descended on Quito. A group of soldiers joined forces with protestors and seized the Congressional building Friday. The head of the military subsequently called for President Mahuad to step down in order to prevent further chaos.

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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