Creating and distributing additional copies is prohibited without the permission of the publisher. Contact subscriptions@latinfinance.com.

Samurai Bond Market: LatAm Issuers Return

Mar 3, 2010

Sovereigns have returned to Japan for diversification at an attractive rate. Corporates are another matter and the scope of the Samurai market remains to be seen.


by Ben Miller

Tapped often in the 1990s, the Japanese investor base shied away from Latin American risk after being burned by the Argentine default of late 2001. After another more global credit crisis, which reminded investors that the developed markets are also risky and directed attention to stronger EM borrowers, the Samurai market may be ripe for the plucking.

 
After years of almost no activity from the region, two of its more reputable borrowers, Mexico and Colombia, locked up sizeable funds in late 2009. Both took advantage of 95% guarantees from the Japan Bank for International Cooperation (JBIC), under a program the multilateral developed to assist EM borrowers.

"We want to reestablish our presence in the Japanese market," says Gerardo Rodríguez, Mexico’s deputy undersecretary for public credit, after placing one of the largest non-dollar EM bonds last year, at nearly $1.7 billion equivalent. "We are looking forward to...

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



LatinFinance Events

Poll

Will ABS become more interesting for LatAm borrowers as US monetary policy normalizes?

Vote    




“The crisis has been a setback for reserve diversification."

Jan Dehn, Ashmore Investment Management


Printing isn't available for this page.