Dopo il Brasile, l'Argentina ? - gz
By: GZ on Giovedì 01 Maggio 2003 00:00
Record (al rialzo) dei bond brasiliani oggi che toccano il loro massimo storico, con una domanda/offerta di 7 a 1
Dopo il Brasile, l'Argentina ?
(da 20 centesimi sono balzati a 30 centesimi nell'ultimo mese)
NEW YORK (Dow Jones)--Brazil's benchmark C-bond hit an all-time high Wednesday as a bullish streak continued to rip through the market following the government's blowout bond sale Tuesday.
In late trading, the C-bond's absolute price rose 1 1/8 to 88 bid, a historic high, according to J.P. Morgan. The firm said on a spread basis, however, the security - trading at 773 basis points over Treasurys - was wider by 89 points from the low seen in March 2002.
The spread refers to what the risk premium is to hold the bonds relative to that of Treasury securities.
The C-bond's rapid-fire rise reflects continued confidence in the government's economic policies as well as a demand for yield from dedicated investors flushed with cash, participants said.
The South American nation received some $7.5 billion in orders for its $1 billion bond sale last session, marking the country's first foray overseas in a year. The bond, upsized from $750 million and maturing on Jan. 16, 2007, rose 2 5/16 to par in secondary trading.
Adding to the positive momentum was Standard & Poor's announcement Tuesday that it had revised its outlook on Brazil's credit rating to stable from negative.
The renewed confidence in Brazil follows a turbulent year in 2002 when many investors feared the country was on the path to default. Wall Street now seems convinced that left-leaning President Luiz Inacio Lula da Silva will stick to the market-friendly economic policies that have characterized his four months in office.
The Brazil euphoria was contagious as the rest of the market rose on the country's upswing, a trader said. "With the excess liquidity in the system, it's not an option not to invest," he added.
The yield spread on J.P. Morgan's Emerging Markets Bond Index Plus narrowed 11 basis points to 577 basis points over Treasurys with the sharpest spread compression on the highest-yielding sovereigns.
For instance, Venezuela's EMBI+ subindex tightened 47 basis points to 1,216 basis points, while Ecuador's narrowed 43 basis points to 1,100 basis points. Meanwhile, Peru's component gained 30 basis points to 397 basis points.