New Bonds: Braced for higher yields

New Bonds: Braced for higher yields

The US Federal Reserve’s December decision to begin winding down its $85 billion monthly quantitative easing program is likely to translate into higher interest rates for Latin American borrowers this year. That could make it tougher for lower-rated companies and countries to tap the market — although some demand is expected to remain for their higher yields. Investment bank Barclays forecasts a busy year for bond issuance, estimating Latin American corporates will sell around $110 billion worth of bonds in the dollar market alone. In 2013, Latin Americans — corporates and sovereigns — raised $160 billion from cross-border bond sales in the year to December 16, according to De

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