Countries/Regions

Investors are punishing Argentina for heterodox economic management, undermining local markets activity. The situation will get worse before it gets better.

Brazilian Double B corporates have steadily crept back to debt markets, taking advantage of the second investment grade endorsement for the sovereign. Investors have shown appetite, but issuers are expected to face stiff competition from US high yield and other EM regions. US yields can often be much higher because of a significant repricing related to the credit crunch.

Pure investment banks are ramping up LatAm operations amid crisis at home. They must outsmart locals and European shops throwing balance sheet at big mandates.

Troubles in external markets have boosted the profile of Mexican local markets, and created a window of opportunity. But investment banks are finding it tough to expand.

Mexico’s last big indigenous financial institution is doing a roaring trade with mortgages, SMEs and state banking. It is apparently not for sale.

Peru needs at least $1.5 billion in private investment to realize its ports potential. Investors face resistance form unions, congress and a discouraging history.

Panama is developing as a regional money center, drawing the majority of flow from politically unstable countries. Locals are also generating significant deposits.