Fed Surprise Wrecks Panama Tap

Fed Surprise Wrecks Panama Tap

Panama

Panama left a large pile of cash on the table during a Wednesday bond reopening that was crippled by a surprise move from the US Fed, say investors and bankers. Just how much the Central American issuer could have saved by waiting is unclear, but the market was generally scathing of the reopening of a 7.25% coupon 2015 issue for $323m. “They gave away a lot of money,” says a banker not on the transaction. “It was good for investors. The issuer could have captured additional value,” says another.

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