Morning Commentary: Latin America deals on the road; Pemex bonds lower in active trade

By Rebecca Melvin

New York, May 1 – A number of roadshows were underway in the Latin America debt market on Tuesday as financial markets in Europe and parts of Latin America were closed for the May 1 labor holiday.

Telecom Argentina SA’s U.S. dollar-denominated notes were being marketed in New York and Boston on Tuesday and will be on a roadshow through Wednesday. Peru’s Camposol SA dollar notes were also on a roadshow through Wednesday, while wrapping up on Tuesday were roadshow meetings regarding Paraguay’s Banco Regional SA’s up to $300 million of up to seven-year notes and Petroquimica Comodoro Rivadavia SA’s dollar intermediate-term notes.

In the secondary market, Petroleos Mexicanos SAB de CV’s bonds were lower in active trade, according to Trace data. The Pemex 5 5/8% notes due 2046 slipped to an 84 handle, trading last at 84.3, down from 85.2 on Monday. The Pemex 6¾% notes due 2047 were last 95.9, which was down from 96.7 on Monday.

The trading came on the heels of news that U.S. president Donald Trump has reached agreements for permanent exemptions of steel and aluminum tariffs for Argentina, Australia and Brazil, and postponed imposing tariffs on Canada, the European Union and Mexico until June 1.

When the tariffs were announced in March – including a 25% tariff on steel imports and 10% tariff on aluminum imports – Canada, Mexico, Brazil, the European Union, Australia and Argentina had been granted temporary exemptions.

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