The first weeks of June were not a friendly period for LatAm
debt issuers in the dollar market. US Treasury yields jumped on
fears that ultra-low rates in the US were coming to an end,
repricing curves for dollar issuers and forcing borrowers to
put deals on ice.
Swiss franc bonds: Taking comfort
With US rates poised to rise, Latin borrowers are turning to Swiss francs in record numbers
The 125 million Swiss francs raised by Banco Santander
Brasil and the 225 million Swiss francs raised by Banco de
Chile in those weeks did not set any records for size. But they
demonstrated a funding option that is still open for a growing
number of Latin issuers. Latin borrowers have sold more than $1
billion annually in Swiss francs since 2010, after just a
trickle in the years before.
This year is shaping up to be a record-breaker. LatAm
borrowers raised a record $1.57 billion-equivalent from nine
Swiss franc deals this year through June 11, according to
Dealogic. That outstrips the...
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