Americas

Argentine authorities were understood to be weighing up debt restructuring proposals from several bondholders on Sunday evening as default looms large for the South American sovereign.

The Province of Ontario raised $1.75bn with a rare seven year dollar benchmark on Thursday. The transaction shared the market with a five year from Japan Finance Organisation for Municipalitities.

The convertible bond market has become one of the hottest areas of the capital markets with a huge surge in issuance in response to the Covid-19 pandemic. But there is growing concern among investors about the capacity of the market to absorb all of this new paper.

There is a huge amount of information to take in at the best of times in the capital markets. During a crisis, it can be overwhelming. So, each week, Keeping Tabs brings you the very best of what we in the GlobalCapital newsroom have found most useful, interesting and informative from around the web.

In this round-up, the relationship between the US and China deteriorates, the US warns its pension fund against investing in Chinese equities, and Mainland regulators vow to develop the financial markets of the Greater Bay Area.

Bank of America became the first global commercial bank to print a Covid-19 response bond this week.

Chinese stocks are in Donald Trump’s firing line again, after the US president announced he is “looking very strongly” at any companies not following local accounting guidelines.

The Province of Buenos Aires (PBA) legally entered default this week amid pleas from its creditors for serious restructuring negotiations. But Argentine sovereign bondholders are still holding out hope that they may come to an agreement with the national government.

Holders of Avianca’s international bonds are keenly watching the Colombian government’s next move after the airline filed for Chapter 11 bankruptcy protection in New York.

US bond bankers want the US Federal Reserve to clarify its timetable to start buying investment grade corporate bonds, as investors are starting to show signs of fatigue after a torrent of high grade issuance.

European banks are set to follow sovereign and supranational institutions and begin issuing senior bonds dedicated to fighting Covid-19 under existing ESG frameworks.

Argentina’s turnaround under former president Mauricio Macri turned out to be a castle built on sand. But as the country heads towards default, the slick execution of its bond market fairytale between 2016 and 2018 could show the Fernández government how to handle investors.