Junk Bond Tap Turns On

Oct 31, 2007

Bond supply resumed later in the year than usual because of a rise the global risk aversion driven by the sub-prime scare. But the taps turned back on in October, particularly for high yield. Mexico got the ball rolling, as per tradition, and bankers predict a solid end to the year, despite competition from loans and local markets, as well as continued external turbulence.


TGI, the Colombian state-owned utility, kicked off the junk party with $750 million in 2017 dollar-denominated notes prices at par to yield 9.50%, marking the first significant cross-border LatAm corporate since July. The amount was $150 million short of the planned $900 million size, although demand is heard to have reached $2 billion. Also, a planned tranche of pesos, floated in the 12% area, was scrapped entirely.


One investor who bought says TGI chose to retool the BB rated offer to maintain a strong...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

Upcoming Events

Poll

Which area will be most profitable for investment banks in LatAm in 2016?

Vote    




Popular Searches