DOLLAR STRAIGHT BONDS END LOWER, TEXACO UNTRADED
The dollar straight sector of the
eurobond market ended lower after another nervous day's
trading, with many operators keeping to the sidelines ahead of
tomorrow's U.S. Trade figures for February, dealers said.
Prices of longer dated issues ended 1/2 or 5/8 point lower,
while short dates were 1/8 to 3/8 point easier.
    Bonds for Texaco Inc units hardly traded during the day
following the weekend news that the company filed for Chapter
11 bankruptcy protection in another twist to its long running
dispute with Pennzoil Co, dealers added.
    The Chapter 11 filing means that Texaco will not be paying
interest on its eurobonds. Dealers in the straight bonds noted
that the market in them had been basis only for some time prior
to the weekend's news. "It wasn't a true market, someone asked
you a price and you just gave them an idea," one said.
    However, the company's convertible bonds had been trading
since the company's share price provided a benchmark to which
dealers could establish a proper price level. The company has
two actively traded convertibles outstanding, a 500 mln dlr
bond due 1994 which pays 11-3/4 pct and a one billion dlr deal,
also due 1994, paying 11-7/8 pct.
    Traders even disagreed about last week's closing levels for
the convertible bonds, but a median appeared to be around 97 to
99 pct. Today, one trader said they were indicated initially at
65 to 70 pct before ending at some 79 83 pct.
    But he added, "That's only an idea. There's no real market
today. I've dealt once during the day, I'm not going to say at
what level." Other dealers were reluctant even to give an
indication of the bonds' levels.
    Dealers said the market in all Texaco deals will almost
certainly remain on an indicated, or negotiated, basis until
the events of the weekend are further clarified.
    The primary market had a steady day, with the Australian
dollar and the yen sectors again seeing the most activity,
dealers said. Deutsche Bank Finance NV Curacao became the first
of three issuers in the Australian dollar market during the
morning with a 100 mln dlr bond due 1990 paying 14-1/8 pct and
priced at 100-1/4 pct.
    The issue was lead managed by Deutsche Bank Capital Markets
(DBCM) and guaranteed by Deutsche Bank itself. A DBCM official
said the firm had placed 60 mln Australian dlrs of the issue
itself and quoted the deal at less one less 7/8 pct,
comfortably inside the 1-1/2 pct total fees.
    The State Bank of Victoria issued a 50 mln Australian dlr
bond paying 14-1/2 pct over three years and priced at 101-3/8
pct. Commerzbank AG was sole manager for the deal, which was
offered on one broker screen at less 1-1/2 pct.
    The day's other borrower in this sector was the New South
Wales Treasury Corporation guaranteed by the crown-in-right of
New South Wales. The five year bond pays 14-1/4 pct and was
priced at 101-7/8 pct.
    Lead manager was County Natwest Capital Markets. It was
quoted at less 1-7/8 less 1-3/4 pct, inside the two pct total
fees.
    Secondary market Australian dlr bonds ended little changed
on the day, with dealers saying that operators are awaiting the
Australian trade figures for March. A deficit of some 800 mln
to one billion dlrs was expected by one house active in the
sector.
    Union Bank of Switzerland (Securities) Ltd lead managed a
15 billion yen bond for Union Bank of Switzerland NV. The five
year deal pays 4-3/8 pct and features a put and call option at
par after four years.
    Priced at 101-5/8 pct, the issue was quoted at less 1-1/4
pct bid on the grey market compared with the total fees of
1-5/8 pct.
    Ente Nazionale per l'Energia Elettrica issued a 15 billion
yen bond due 1994 at 4-3/4 pct and priced at 101-7/8 pct. The
deal was quoted on the 1-7/8 pct total fees.
    Elsewhere, Alza Corp issued a 75 mln dlr convertible bond
due 2002 through Merrill Lynch Capital Markets. The par priced
issue has an indicated coupon of between 5-1/2 and 5-3/4 pct.
 REUTER
