June 8, 2018 |
2017 was a breakout year for local currency notes sold to foreign investors, and the momentum carried over into the early part of this year. Well-known sovereign issuers, such as Chile, Peru and Uruguay, added to their local currency bond curves. The Dominican Republic and the province of Buenos Aires also found room to raise funds in local currency. In recent months, however, the appetite for local-currency bonds has dwindled as market volatility and political uncertainty has kept would-be issuers at bay. The Dominican Republic went to the market in February, selling 40 billion pesos ($806 million) in local currency notes just as yields on 10-year US Treasury notes approached a four-year hi
Global local currency bonds were a popular fundraising option in 2017, but new issues have slowed down this year as investors look to avoid exchange rate risk amid market uncertainty.