DEBT: Local Market Steps Up
European sovereign troubles have shut the door on LatAm companies hoping to issue bonds overseas, though local markets offer some relief.
A permanent solution to debt
problems in the euro zone are far off, and since Latin issuers
generally have no urgent need for cash, they are waiting for
volatility to subside.
"Were happy with [EM]
fundamentals, were worried about technicals," says Esther
Chan, who helps manage $5 billion in EM bonds at Aberdeen Asset
Management. However, continued volatility and threat of more
downside limit the risk investors can swallow. Chan says
continued inflows over the next few months would revive
investor appetite for EM.
High-quality issuers in Latin Americas local markets
have still been able to raise funds. Pemex continued in a quest
to single-handedly account for 2010 Mexican DCM volume, with a
15 billion peso deal priced tighter than initial expectations.
In May, it sold 8.5 billion pesos in 2014...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.