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 Credit Lyonnais Securities (USA)

Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Tuesday, December 14 1999

Daily Brady Bond Trading Commentary

Emerging market debt prices held steady in the face of a sharp rise in U.S. Treasury yields. Yet again, statistics (retail sales and consumer price index for November) point to strong growth and low inflation in the U.S., providing an ideal backdrop for growth in Latin American economies. Treasury traders remain nervous, however, responding to fears among some FOMC members of uncontrollable growth and excessively tight labor markets. Assuming the Fed stays on hold next week, the early February FOMC meeting will keep the market on edge. Argentina may request an additional $2.2 billion in standby loans from the IMF on top of its existing $2.8 billion extended fund facility. Additional backing would be a necessary precaution should global liquidity conditions tighten, given the country's need to attract foreign capital next year.
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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