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
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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