THE QUARTER point cut in rates by the US Federal Reserve this week sent bond prices dramatically higher and confirmed that the market has rebounded strongly from the gloom of just a short time ago. Proof of the improved background was the successful execution of a $1bn seven year bond for Argentina. The deal, increased from $750m, has warrants attached exerciseable into the Argentina 30 year bond. A 10 year deal for Pemex was also increased, from $300m to $600m.
November 20, 1998