January 1, 2010
A firmer year is expected in 2010, with much more solid foundations, though some worry about a bubble forming as high yield reinflates. The speed of recovery shocked many LatAm skeptics, used to seeing boom followed by bust. Borrowers who focused on the fundamentals and believed in recovery got what they wanted, on surprisingly good terms. A number of firsts were achieved as the switch flipped, liquidity flooded back in and issuers got back to business. Santander showed the way for multinationals operating in Brazil, raising $8 billion, setting a record for size but upsetting investors with performance. In fixed income, Colombian issuers proved their mettle in cross-border bond markets, whil
Participants in last year’s capital markets bungee jump will remember it forever. In Latin America, the key lesson learned is that the bigger, more investor-friendly economies can take external shock on the chin.