Living with Uncertainty
The region’s public credit managers have addressed funding needs early on this year ahead of uncertainties. The market tone has improved since January, but risks remain.
Latin American sovereign issuers had issued $9.63 billion through April 20, according to Dealogic, with $5.43 billion raised in January alone. This compares to $3.03 billion in sovereign issuance during the same period in 2011. Risk appetite has improved more than anyone would have expected back in the pessimistic days of the second half of 2011. Better news from Europe, the US and Asia has helped calm investors, and the region’s governments have jumped out to snare funds ahead of uncertainty.
“This year we have seen significant reduction of risks, with the European Central Bank providing liquidity to Europe, and positive US figures, but we are not out of the woods yet,” says Alejandro Díaz de León, public credit director for Mexico, speaking at the recent LatinFinance IDB Breakfast in Montevideo. Mexico has already raised $4 billion internationally this year and is not in need of more....
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