Debt: Chasing yield

Debt: Chasing yield

Bonds

Falabella became Chile’s first corporate borrower to sell a global peso transaction in late April, adding a $200 million-equivalent tranche to a $500 million dollar bond. The triple-B rated borrower paid a reoffer yield of 6.5% on the peso tranche and 3.861% for the dollars. The deal came amid a busy March and April for Latin America’s debt markets, and followed a handful of global real transactions. Cosan raised $750 million in a dual currency deal in early March. Investors placed $9 billion in orders for the debt from the energy and infrastructure company. It sold a 500 million real ($252 million) 2018 tranche to yield 9.625%, alongside the initially planned $500m 2023 tranche, which i

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