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 Credit Lyonnais Securities (USA)

Brady Bond Trading Recap

contributed by Credit Lyonnais Securities (USA) Inc.

Tuesday, December 21 1999

Daily Brady Bond Trading Commentary

The FOMC decided to leave rates unchanged Tuesday and kept a neutral policy stance. Fed comments indicate, however, that the decisions were largely based on Y2K concerns and that there may be reason to assume a tightening stance early next year, particularly as demand continues to grow. Economists have been raising their year-2000 growth forecasts, commodity prices remain strong, and financial asset prices will do anything but discourage the Fed from taking at least precautionary measures against inflation. Standard & Poor's downgraded Venezuela's foreign currency debt rating one notch to "B", and shifted its outlook to negative. The downgrade reflects the agency's outlook on Venezuelan politics, as S&P officials cited the detrimental effects the new constitution is likely to have on structural and fiscal reforms.
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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