Bond market news: Paying the price

Nov 1, 2013

Despite LatAm bond markets reopening after a turbulent period, borrowers are finding that funding costs are higher, and deals tougher, than earlier this year

By Mariana Santibáñez

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...

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