Summer doldrums and a steep spike in volatility have pushed
volumes lower in recent months. The door essentially slammed
shut for junk credits in August, and left high-grade borrowers
to dominate new issuance as they took advantage of razor-thin
rates after a flight to safety bid sent yields on US Treasuries
In early July, Colombia emerged for the first time in 10 years
as a full-fledged investment grade credit, allowing it to raise
$2 billion in 10-year bonds with its lowest ever coupon. Demand
hit $7 billion before the sovereign priced the issue with a
4.375% coupon to yield 4.425%. With nine Bs behind it, Colombia
was able to capture a wider group of investors through leads
Bank of America Merrill Lynch, Barclays and Citigroup.
Early August saw the worst selloff since 2008 in the wake of
S&Ps downgrade of the US to AA+ from AAA, but...
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