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 Credit Lyonnais Securities (USA)

Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Wednesday, January 26 2000

Daily Brady Bond Trading Commentary

Argentina came to the market yesterday with a US$ 1.25 billion 20-year bond yielding 12.08 percent and managed to hold above the fixed reoffer price. This was Argentina's third bond sale since the government of President de la Rua took office in mid-December. Turkey tapped the Euro market taking Euros 750 million at ten years. On the banking side, tomorrow Banco Bradesco will issue a 2-year US$ 100 million Eurobond at a price of 9 to 9.25 percent.

So long as we see supply, and the threat of higher rates following the FOMC Meeting on February 2, it is difficult to see Brady bond prices rally and we saw prices slowly wilt. In Ecuador the new President chose Pablo Concha as his Minister of Finance, a position that Mr. Concha held some four years ago under former President Abdala Bucaram, whom the Ecuadorean Congress removed on grounds that he was mentally unfit.

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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