Fears for quiet January in bonds
Market participants say bond sales could fall year on year this month — but US Federal Reserve action will be a decisive factor
Forecasts were mixed for cross-border debt
issuance in January, after a quiet open to the year
No Latin American borrowers have announced
new cross-border bond transactions this year, and bankers and
investors are looking to Monday for the cross-border bond
markets to reopen in earnest.
Even there, market participants were split
over the outlook: one said bonds would like return to a normal
issuance pace and another said an "extremely busy" month was
ahead. Others, though, said the week could start softly as
borrowers test market conditions.
That echoed views in
LatinFinance’s latest online poll, which
asked readers how the pipeline for LatAm dollar bond sales this
month would compare to the same period in 2013.
More than a third of respondents (35%)
bond sales would be lower this year than last, while the
same proportion said supply would depend on actions by the US
Federal Reserve. The poll was open December 16 to January
Latin America’s local markets
have not slowed down over the year-end, though. In Brazil,
Ouro Verde are preparing debenture sales, while Chileans
La Araucana are doing the same. Mexican toll road
Tenango-Itxapan de la Sal is planning a securitization.
LatinFinance’s latest poll asks
whether Mexican or Brazilian companies will dominate in the
equity markets in 2014.