Sovereign Report

Sovereign Report

Mexico

Chile and Mexico's One-Two Punch In early January, Mexico and Chile took advantage of pent up demand for emerging market debt to raise a total of $3 billion in the international capital markets in two days. Chile issued its largest bond to date with a $1 billion, 10-year bond. With US Treasury yields at a historic lows, coupled with Chile's A- rating, the sovereign was able to launch the bond at 163 basis points over comparable US Treasuries for a yield to maturity of 5.62%. The bonds carry a 5.5% coupon and priced at 99.091. Deutsche Bank and JP Morgan managed the sale. The government says that it will use $460 million of the bond's proceeds to finance its budget deficit and the remainder

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial