November 1, 2009
Boundaries have rapidly receded, throwing open the doors to euros, perpetuals and low junk rated issuers. For high grade, new issue premia have all but vanished and the pipeline generally is brisk through year-end. The performance of new issues has been very strong, but the market is becoming more efficient, says Eric Ollom, chief EM fixed income strategist at Jefferies. The starting points are much lower in terms of yield. Though he notes that a global risk correction was possible in the short term, there was still a lot of cash to be put to work. And new names will still have to pay, says Ollom.
Banco do Brasil rekindled the perpetual bond market in Oct
Appetite for LatAm credit was in October sounding like a broken record, or at least one dusted off from 2007 that has gotten everyone dancing again.