February 1, 2001
A revival of the Samurai market is underway and Latin American sovereign borrowers are once again seeing the appetite for yen-denominated bond issues that prevailed in the mid-1990s. Emerging market issuers flocked to the Samurai market last year, attracted by Japan's flat domestic interest rates, a surge in liquidity and a yearning for higher yields.
But is this revival sustainable? Could the Samurai market emerge as a true third market for Latin American sovereigns? Or is this just a brief opportunity created by a wave of cash-flush retail investors looking for better returns?
Daniel Gleizer, a director at Brazil's central bank, thinks there is a long-term investor base in Ja
After going up in smoke during Asia's financial crisis, the Samurai market has sprung to life, offering a valuable fund-raising alternative to Latin sovereign borrowers.