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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (11944)	4/24/1999 9:55:00 AM
From: Daniel Joo	Respond to of 99985

Is money shifting to more of these higher yielding funds? Note the part where U.S. investors absorbed 2/3 of this offering. It's not a large dollar amount but a 11.88% return on this market for new money means a DOW of almost 12,000. If I'm doing risk analysis, I'd say that the probability that we are going to see DOW 12,000 is pretty unlikely this year - but then again... Yield spread to U.S. treasuries is pretty wide as well - I suspect a continued rise in rates. April 24, 1999 Soros Says Sale of Debt Means End of World Crisis By BLOOMBERG NEWS eorge Soros, the financier, said Friday that Brazil's $2 billion note sale showed that the world's financial markets had recovered after their turmoil last year. "The global financial crisis is now officially over," Soros said at an investors conference in Manhattan. "So now we can look for the next one." Brazil's sale of five-year notes marked the first time the country tapped international capital markets since last April. The notes were priced on Thursday to yield 11.88 percent, 6.75 percentage points more than United States Treasury securities of comparable maturity. Demand was strong. Armínio Fraga, the president of the Brazilian central bank, said Friday that there were more than $6 billion of bids for the $2 billion of five-year notes. About two-thirds of the notes sold on Thursday went to United States investors, with the rest going to Europe. There was a total of 308 separate accounts, Fraga, a former aide to Soros, said at a news conference. "We were very happy with the $2 billion cash offer," Fraga said. "It achieved the objectives we set of borrowing to cover both domestic and foreign debt and set a benchmark for foreign issuers." Fraga said Brazil planned to sell more debt, but he would not say how much or what terms. "We are putting together a program to better manage our yield curve," he said, referring to Brazilian efforts to sell debt with longer maturities. The second part of Brazil's debt sale -- an exchange -- closed yesterday. Investors will be able to swap previously issued Brazilian Brady bonds they own for the new five-year notes. Fraga declined to discuss the results of that sale.