Emerging-market debt pricing

Omni Whittington Commentary, March 2005

Cuba – Update

The price range generally quoted for Cuban debt is quite wide. Trade debt is quoted as low as 2%, whereas the medium term ‘Credit Lyonnais’ loans currently trade at up to 14%. Demand for Cuban debt by speculative investors is higher than these prices reveal. For well-documented trade debt packages of reasonable size, demand is such that better prices may be obtained. We invite holders of Cuban debt to contact us to discuss trading possibilities and/or measures to maintain the validity of their debt documentation.

Zimbabwe – Uncertainty prevails

The current political and economic chaos in Zimbabwe has its influence on the prices quoted for Zimbabwean trade debt, which have been decreasing steadily. The outcome of the upcoming elections may give an indication of the near term potential of Zimbabwean debt prices, but a short term recovery is not to be expected. Actual trading in Zimbabwean debt is very limited and quoted prices vary widely. We have been approached by parties with solutions for certain specific debt classes, seeking sellers of such debt. Prices can be substantially higher for such trades, but may take some time to materialise. We invite interested sellers of Zimbabwean trade debt to contact us.

For a PDF of prices, click here