Junk Jumps, Dives

Junk Jumps, Dives

Corporate & Sovereign Strategy Bonds Loans

LatAm corporates, and specifically high-yield issuance, continued to be the dominant theme in May and June after initial optimism about single B borrowers’ ability to tap DCM quickly faded in the wake of several postponed transactions. In May, the market welcomed junk names with open arms. Brazilian oil and gas company OGX raised $2.56 billion, marking the first company controlled by magnate Eike Batista to try its luck in the international bond markets. While leads were forced to widen pricing by 100 basis points, the deal was hailed as a victory for single B issuers. After setting a $2.0 billion size and whispering a 7.5% yield, leads were forced to revise to 8.5% after

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