As a global recession inches ever closer, Latin American
companies and their investment bankers are bracing for tough
times ahead. The bankers have already endured years of fierce
competition for dwindling deals and low fees and are readying
to do battle for even fewer mandates.
In Sickness and In Wealth
As Latin America and the world head toward economic recession, investment bankers gear up for new kinds of offerings. Local mergers, tailor-made products and increased advisory work will shore up bankers' bottom lines.
With high-profile privatizations and international bond
placements fading further into the past, advisory work in the
region will shift hard toward the domestic markets. And as
international capital markets shun emerging market risk, global
debt and equity markets will be closed to all but the most
credit-worthy institutions in the region.
Still, billions of dollars in debt issued by Latin American
corporations, governments and banks are coming due early next
year. Some bankers suggest that the recession could help them
cement relationships with clients and bring in new advisory
work that has been scarce in recent years. "Ultimately, the
activity is going to have...
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