June 18, 2013
The recent rise in US Treasury bonds has jolted Latin American
borrowers – along with the rest of the issuing community that uses treasuries
as a pricing benchmark – out of an easy period of cheap funding, and put many
LatAm bond deals on hold.
As investors globally study the uneasy economic recovery in
the United States, and the US Federal Reserve’s likely reaction to it,
investors are nervously positioning in a bid to play the rate change
profitably. Already cash is thundering
As developed-market stimulus unwinds, bond investors prepare for a long and volatile process.