Recent bond rates

NewBoy says on Feb 23, 2006, 04:53:

Colombia's Credit Rating May Be Raised by S&P Feb. 22 (Bloomberg) -- Colombia had its outlook raised to positive by Standard & Poor's as growing investment and a surge in exports boosts the country's ability to pay back its debts.

The change means S&P is more likely to raise than lower Colombia's foreign currency government bond rating over the next two years. S&P rates Colombia's foreign debt BB, two levels below investment grade and in line with neighboring Peru and Panama.

``This is a favorable move,'' Finance Minister Alberto Carrasquilla told reporters in Bogota. ``It's a step in the right direction and we expect more.''

President Alvaro Uribe's efforts to stem the violence caused by four decades of war have cut abductions and murder, helping attract 97 percent more foreign investment since he was elected in 2002 and enabling the $117 billion economy to grow at its fastest pace in a decade.

The yield on Colombia's 8 1/4 percent bond due in 2014, one of the government's most-traded dollar bonds, fell 2 basis points, or 0.02 percentage point, to 6.03 percent at 4:39 p.m. in New York. The bond's price, which moves inversely to the yield, rose 0.1 cent on the dollar to 115 cents.

``The important move would be to investment grade,'' said Jonathan Binder, who helps manage $220 million in emerging market assets, including Colombian bonds, at INTL Consilium LLC in Fort Lauderdale, Florida. `` That is not in the cards, I think, for Colombia, although it has been done before. One more move and it is on the horizon.''

Budget Deficit

Colombia's economy grew 5.75 percent in the third quarter from the year-earlier period after expanding 5.62 percent in the second quarter. Total investment rose to 22 percent of gross domestic product in 2005 from 15 percent in 2002, according to the government.

``The country's better growth prospects are largely a result of significant and sustained improvement in domestic security that has, in turn, led to renewed domestic confidence and double-digit growth in private investment,'' S&P analyst Richard Francis said in a statement.

S&P said Colombia's ability to narrow its budget deficit is compromised by ``large'' money transfers to local governments and pension systems, hurting the country's chances of winning higher credit ratings.

LINK:

http://www.bloomberg.com/apps/news?pid=10000086&sid=axYc4HA6H7yk

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Tinto (Moderator) says on Feb 23, 2006, 07:51:

Thanks, NewBoy GringoinBogota, check out the DANE site. They have exports sliced by country of destination and by product line (coal, oil, coffee, nickel, etc) for every month. Last time I checked they had the monthly figures through November. By now they probably have them through December.

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NewBoy says on Feb 23, 2006, 08:49:

GIB Exports are increasing in Colombia, the strong Peso affects some manufactures, but is really irrelevant overall for commodities and agricultural goods, seeing as most of the competitors have also had their curriencies gaining against the dollar.

Colombia exports are mostly commodities, with manufactured goods just a small part of that, my friends who are also involved in exporting manufactured goods have also increased their exports to overseas Countries, regardless of the Peso strength.

As is normal the ones that can compete, don't cry, the ones that can't, complain, so you only get a one sided story.

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Brians says on Feb 24, 2006, 10:02:

The strong Peso is hurting I was speaking with my new cousin in Colombia. They own a large banana exporting company. The strong Peso is killing their profits as they have to convert the currencies back to pesos. The strong peso is an accurate indication of the strength of the economy but it is hurting exporting companies. As rates continue to fall this may slow somewhat. I hope so because I am buying a place in Medellin this summer and a weak peso between now and then helps me. Longer term I think that things are only going to get better if Uribe can get re-elected and keep a majority.

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Pete E says on Feb 24, 2006, 14:59:

Peso Uribe would like the peso lower to help exports.And the rumor was it was going to drop this year.But so far it continues to strengthen.
People buying dollars here at a discount and taking them back to the US actually affects the exchange rate there is so much dollar dumping here.Rumor is its dollars paid for drugs.
You can take up to $10000 dollars back at a time.They are starting to ask how much you are carying.I'm not sure you have to tell them ,up to $10,000 is legal.

Pete

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NewBoy says on Feb 25, 2006, 04:44:

pastygringo The only problem is that I can only see the dollar going South in the short term.

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poco says on Feb 25, 2006, 08:28:

Not a big problem for the working poor
Record High Exports This is certainly good news.

The strong peso has helped many farms purchase much needed capital equipment such as tractors, irrigation equipment, trucks etc. Several years ago a tractor selling for 100,000 U.S. Dollars now costs the farmer 80,000 U.S. Dollars based on the current lowering exchange rates. Coupled with the huge inflation decrease that coincided with the current administration taking office this has helped lead to a steady lowering in the Colombian consumer price index.

The export segment of the Colombian Economy is ONLY 20% and while some are obviously hurt by the low dollar the export sector is increasing. Unfortunately for a majority of exporters this increase seems to come primarily from Oil, Coal and Coffee, leaving many business “hurting� if they can't raise their prices or lower their costs.

A steadily weakening peso was the norm for many years. Great for the exporters but bad for the population in general. Past administrations were leaving the poor behind and, it seems, to the benefit of the rich exporters. Yep, it was time for a change that started several years ago,,, now if only the rate would only go back to my predicted 2550 before years end.

"When you men get home and face an anti-war protester, look him in the eyes and shake his hand. Then, wink at his girlfriend, because she knows she's dating a pussy." Quote - General Tommy Franks

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