New Bonds: Braced for higher yields
Borrowers and bond investors are bracing for the impact this year of rising rates, but markets are set to stay busy.
By Mariana Santibáñez
The US Federal Reserve's December decision to begin winding
down its $85 billion monthly quantitative easing program is
likely to translate into higher interest rates for Latin
American borrowers this year. That could make it tougher for
lower-rated companies and countries to tap the market -
although some demand is expected to remain for their higher
yields. Investment bank Barclays forecasts a busy year for bond
issuance, estimating Latin American corporates will sell around
$110 billion worth of bonds in the dollar market alone. In
2013, Latin Americans - corporates and sovereigns - raised $160
billion from cross-border bond sales in the year...
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