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Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Thursday, May 11 2000

Daily Brady Bond Trading Commentary

The sell-off in most Latin credits stalled Thursday, with the exception of Argentina. Argentina's Brady and global bonds were hammered again, as heavy investor selling continues to weigh on prices. Disappointing growth and fiscal numbers have shaken some of the longstanding confidence the market has had in the country, and even local players have found it difficult to live with the recent losses. Political pressure is beginning to build as local business and labor will look for the government to help boost the economy. Brazil EI's have remained relatively well supported and now trade through FRBs on a yield and spread basis. Yet Brazilian global bonds still offer a sizeable yield pick-up versus Argentina of 65 to 135 bps, even after outperforming by 25-50 bps on Thursday.
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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