DCM: Pipeline Builds
Revived European debt woes put a lid on last yearâ€™s bumper DCM volume, which was fuelled by unprecedented fund inflows and tantalizingly low rates for borrowers.
Pipelines are nonetheless huge, and all eyes are on the January sales.
"There is still a lot of liquidity out there, and there is still a compelling case for a lot of funds to buy EM debt," says Eduardo SuÃ¡rez, corporate credit analyst at RBC. SuÃ¡rez sees issuers with large capex needs, such as Petrobras, Vale, and Pemex, looking to lock in attractive rates.
Bankers say issuers that opted not to pull the trigger in November and December are ready to go in January. Developer Cyrela had been considering a perpetual or global-local, through Credit Suisse, ItaÃº and Morgan Stanley. Chilean banks including BanChile and BCI were considering new deals. Jumbo deals from Brazil, Colombia and Mexico are also standard practice in a new year. A benchmark-size dollar debut from Chilean retailer...
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