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...
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.