New issuance prospects in August appeared as dim as they had
at any time since the 2008-2009 financial crisis. With markets
shedding value across the globe, investors started to question
EM strategies as funds withdrew from risk. Pointing again to
the strong fundamentals that led LatAm through the last crisis,
bulls see the region muddling through and new issuance
returning. In Latin America, there has been an average of
$7 billion to $8 billion in new equity issuance per quarter
during the last 18 months, and we see no reason to suspect the
market would slow from that, said Jason Press,
Citigroups LatAm equity strategist, speaking in early
August. The US bank has a preference for companies tied to
interest-rate sensitive sectors that have suffered but should
recover once Brazilian government policies become clearer and
worries about the US and Europe subside. These include banks,
low-income homebuilders, and certain...
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.