March 27, 2019 |
An inverted yield curve signals a potential recession in the United States and could affect bond issuers from Latin America, which have benefited from solid investor interest in the first quarter this year, LatinFinance has heard.
"It's a negative sign," said a debt capital markets banker in New York. "Brazil and Mexico are selling bonds to developed countries. If the US or China slows down, investors will fly for safety and put money in US Treasuries until things get better."
Fears of a coming recession could convince investors to ignore LatAm issuers and put their money in US Treasury notes, source says