By Mariana Santibáñez
Bond market news: Paying the price
Despite LatAm bond markets reopening after a turbulent period, borrowers are finding that funding costs are higher, and deals tougher, than earlier this year
Latin American governments and companies have rushed back into
the bond markets since mid-September. But after a few months'
separation, they are finding investors cooler to their charms
than in the frenzied first quarter.
Debt markets rallied on the US Federal Reserve's September
decision to postpone winding down quantitative easing, and
again when the US government reopened after a budget dispute -
which also relieved fears that a sovereign default was
approaching. Weak employment data, which the market took as an
indication that US monetary conditions would remain loose for
longer, further spurred conditions.
But investors are still proceeding with greater caution than
in the first months of the year: investment-grade borrowers are
finding they have...
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.