DEBT CAPITAL MARKETS: Stretching out

Jul 1, 2014

Issuers have taken quick advantage of a rebound in appetite for Latin American bonds following a brutal sell-off as the year began. But is the rally storing up trouble? ?By Eduardo Garcia

Listen to Mario Beauregard, chief financial officer at Mexican oil and gas monopoly Pemex, and you might be forgiven for thinking companies in Latin America are in no rush to lock in lower rates. Speaking to LatinFinance, Beauregard says he does not expect a scenario of high volatility in the rates market that would send shockwaves into the region's credit markets.

"To the extent that the US economy starts showing more solid signs of recovery, we may see interest rates going up, but I don't foresee that happening in a disorderly fashion," he says.

Yet a wave of bond issuance and liability management exercises in Latin America, leading up to the start of the soccer World Cup in Brazil in mid-June, suggest the region's financial managers have been clamoring to take advantage of a new wave of global liquidity, and the return of investor appetite for emerging markets,...

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