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 Credit Lyonnais Securities (USA)

Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Tuesday, January 25 2000

Daily Brady Bond Trading Commentary

Although the Consumer Confidence Index came it at the highest level in its over 30 year history - and well in advance of economists' predictions - bonds perfomed well as President Clinton gave a very encouraging overview of the economy. In Latin American markets, we continue to wait the launch of the Argentine 20-year bond with spread talk firm at UST+537.5bps and a target of US$ 1 billion.

At the same time, Argentine Economy Minister Jose Luis Machinea expects to reach an accord with the IMF for a US$ 5 billion credit line within the next two weeks. In Brazil the State of Minas Gerais stated that it would only be able to pay a partial amount of its US$ 100 million Eurobond maturing on February 10 and this unnerved investors although it seems likely that the Federal Government will pay the balance. In Ecuador Antonio Vargas, who led the protests that forced Mahuad from office, has begun to criticise the new President and is arranging a new wave of protests against the "dollarisation" program.

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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