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A Roaring Start

May 1, 2012

Following record-breaking issuance in the first few months of the year, March continued to see a healthy amount of issuance from both investment grade and high-yield names. LatAm credits issued $46.6 billion in cross-border bonds from 72 transactions through April 20, according to Dealogic, up from $36.49 billion from 65 deals in the corresponding period of 2011. Volume slowed a bit in the first half of April, but Brazil revived the global real-denominated market with the first such deal seen in nearly a year. The sovereign emerged with a 3 billion real ($1.6 billion) 2024 bond, allowing it to boost liquidity in its real curve, and achieve a yield called the lowest-ever for a global real transaction. Brazil got 5 billion reais in demand, pricing at an 8.6% yield, for a deal partially used to replace shorter-dated 12.5% real bonds. HSBC and Goldman...

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

Jan Dehn, Ashmore Investment Management


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