September 25, 2013
By Mariana SantibáñezNumerous borrowers raced to the dollar bond market in the first weeks of September, anticipating a potential wind-down of quantitative easing by the US Federal Reserve and ending a typically quiet August. DCM bankers hoped for a busy second-half of September, although that would depend on whether LatAm issuers view borrowing costs as still attractive as the yield on the 10-year US Treasury approaches 3%. Investors have been pulling money from bond funds, yet any stabilization in Treasury yields could drive a rebound in appetite for issuance.
Mexican issuers reopened the bond market in July after a bout of volatility, playing an active role in an otherwise quiet period.
Borrowers have lunged at bond markets before and after a summer hiatus, eager to raise cash while it’s available. In need of acquisition funds, América Móvil has been particularly active