Emerging Markets Companion

Home | Asset Prices | News & Global Markets | Research | Search

Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Tuesday, May 9 2000

Daily Brady Bond Trading Commentary

Emerging markets debt prices remained mostly unchanged Tuesday as liquidity continued to dry up ahead of next week's FOMC meeting. After getting hit with paper from accounts last week, dealers are still anxious to sell into strength. A number of corporate deals from the past six months are also growing stale on dealers' books, and may force further hedge-related selling. With 50 bps of tightening virtually factored in to the U.S. Treasury market, we see room for a relief rally after the fact next week, although any strong comments from the Fed will impact the market as much as the interest rate action. In any case, supply dictates that equity related bounces are likely to be met with heavy selling pressure in the near term. Mexico's April CPI met expectations at 0.57% m/m, representing annual inflation at 9.75% (the government's 2000 year-end target is 10%).
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.
 

| Home | Asset Pricing | News & Analysis | Research | Related Sites | Table of Contents | Search

We welcome your comments, opinions, and submissions to EMC.
Please write us at feedback@emgmkts.com

Copyright © 1996-2000, The Emerging Markets Companion, and/or its licensors. All Rights Reserved. The information herein was obtained from sources which The Emerging Markets Companion, Inc. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities. Please read our full disclaimer.