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Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Tuesday, March 14 2000

Daily Brady Bond Trading Commentary

Emerging Markets could not separate from a down day in the volatile U.S. equity market. Most Mexican debt is now trading well below the levels seen immediately before the Moody's upgrade announcement. S&P's ratings upgrade on Monday of this week gave the market a lift, as did Mexico's impressive industrial production growth of 8.2% y/y in January. But the EM debt market is driven by liquidity as well, and, especially amid the abundant supply of new issues, the market is concerned with the potential side effects of major disturbances in G-7 capital markets. With U.S. inflation figures to come later this week, and an FOMC meeting next Tuesday, we expect to see good selling into either strength or weakness. But we also expect to see Latin governments to continue to look for opportunities to manage their liabilities, primarily through Brady buybacks and/or exchange deals.
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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