EM LATAM CREDIT: Republic of Bolivia (BOLIVI; Caa3/CCC+/CCC-): Debt Payments
“Bolivia Will Make Debt Payments Due in March: Finance Minister” – BBG
Neutral for bond prices
• The Bolivian finance minister Marcelo Montenegro said the country needs to pay USD190mn this month of which USD55mn will be paid to bondholders March 20th.
• Senator Cecilia Requena said another USD100mn loan is expected to be approved by the Plurinational Legislative Assembly (ALP) this Thursday. The Senate also approved USD75mn loan from multilateral organization CAF.
• Among other obligations, the government has a USD333mn sinking fund payment due March 2026 for its 4.5% 2028 USD bonds. The IMF in its latest report on Bolivia from early February 2025 expressed concerns about the difficult financial situation with international reserves nearly depleted and uncertain fiscal financing.
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Historical bullets
ESM ISSUANCE: 10-year Feb-35 syndication: Priced
- Reoffer: 99.063 to yield 2.859%
- Size: E2bln WNG
- Books closed in excess of E8.5bln (ex JLM interest)
- Spread set earlier at MS+42bps (guidance was MS+45 area)
- HR 98% vs 2.50% Feb-35 Bund (ref 100.16 + 37.8bps)
- Maturity: 26 February 2035
- Coupon: 2.75%, Long first
- Settlement: 24 February, 2025 (T+5)
- ISIN: EU000A1Z99W5
- Bookrunners: BofA (DM/B&D), DB, Santander
- Timing: TOE 12:22GMT / 13:22CET. FTT immediately.
From market source
JPY: Fading USD/JPY Adds to Bullish JPY Impetus
USD/JPY fade picking here slightly into (what would be) the US open - USD/JPY edges to a new pullback low at 151.42, marking a break through 151.65 and the overnight lows. Weakness here looks contained until any test or break through more notable support at 150.93 - the YTD low posted just over a week ago.
- Perhaps unsurprisingly volumes are lighter than average so far Monday with the US holidays, however activity is holding up pretty well: CME JPY futures show activity running ~15% below what you'd expect to see at this point in the session.
- As mentioned above, conviction over shorting EUR/JPY is building among the sell-side, and coincides with the failure of the cross to break technical resistance at the 50-day EMA in recent sessions - and should USD/JPY take out the bear trigger at 150.93, that makes two notable technical indicators pointing to JPY strength.
OPTIONS: Larger FX Option Pipeline
- EUR/USD: Feb18 $1.0300(E1.7bln), $1.0440-50(E1.3bln); Feb19 $1.0500(E1.5bln); Feb20 $1.0520-25(E1.5bln)
- USD/JPY: Feb19 Y155.00-20($1.7bln); Feb20 Y154.00($3.0bln)
- NZD/USD: Feb19 $0.5450(N$1.7bln)
- USD/CAD: Feb18 C$1.4295-00($1.5bln)
- USD/CNY: Feb20 Cny7.2000($1.9bln), Cny7.2500($1.4bln), Cny7.3700($1.3bln)
