2000-04-26 Trading in narrow range

Daily Brady Bond Trading Commentary

Wednesday April 26, 2000

Emerging markets debt continued to trade in a narrow range Wednesday, as prices slid back from yesterday's gains.

With little more detail on Argentina's proposed debt swap available, traders focused on equity markets again and showed little tolerance for down-ticks. Mexico's Presidential candidates debated Tuesday evening, and the consensus opinion in the local and foreign press was that the PAN's Fox scored points versus the PRI's Labastida, though few issues of substance were addressed.

Fox criticized Labastida, but appealed to the other candidates to join his transitional government. Ecuador's Finance Minister said the government would present its foreign debt restructuring proposal by mid-June, and that it will meet with bondholders in small groups beginning next week.

The comments come as creditors are seeking the release of US$200 million in collateral on Par and Discount bonds. Discussions have been limited since the government first missed a payment in September and are not likely to proceed rapidly.

Contributed by

Credit Lyonnais Securities (USA) Inc.

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.