Americas

Bonds issued by Colombian financial holding company Gilex and its subsidiaries widened on Tuesday as the lender’s proposed acquisition of BBVA’s Paraguayan bank triggered a downgrade review from Moody’s.

Equity capital markets bankers and investors are coming to terms with the idea that there may not be a trade deal to end tensions between the US and China this year, despite the former delaying some of its latest tariffs on Chinese goods until the end of the year.

The People’s Bank of China (PBoC) bagged Rmb30bn ($4.3bn) through a two tranche trade on Wednesday. It was not the first time the issuer picked a curious time to sell Bills.

Recession fears are rising again as GDP slows, global trade tensions rise and overvalued stock markets become more volatile. Big tech should take advantage of high price to earnings ratios to raise equity capital now and to prepare for tougher days ahead.

As Argentine assets endured a torrid Monday on the back of Mauricio Macri’s poor performance at the weekend’s primary, analysts warned that the peso’s harsh devaluation would push public debt — which is largely in hard currency — up to perilous levels. This could accelerate a sovereign default, said Capital Economics.

Bond market analysts said that conversations about Argentina assets would return to the likelihood of default as market-friendly president Mauricio Macri suffered a heavy defeat in Sunday’s primary elections.

The rout of the incumbent president Mauricio Macri in the first round of the Argentina elections has investors worried. Argentina’s debt, and that of other 'vulnerable' credits, suffered a huge sell-off early on Monday. But bankers believe that it was not so bad that the primary market will not reopen in September.

In this round-up, China’s positive trade data despite the trade war surprised markets, trading volume in USD/CNH futures hit new highs thanks to the weak renminbi, and the Mainland’s foreign currency reserves fell after two months of growth.

In this round-up, hostility between China and the US continued, the State Council unveiled rules on the Shanghai Free Trade Zone and Beijing said it would intervene if the Hong Kong government fails to calm down the recent unrest.

Mexican leasing company Unifin issued $200m of three year debt via a private placement this week on the back of reverse inquiry from an institutional investor.

GlobalCapital has published the nominations for its Sustainable and Responsible Capital Markets Awards. The winners will be announced on September 17, at our Awards Ceremony in Amsterdam.

Lloyds Bank dipped into dollars for senior funding on Wednesday, a day after UBS launched a deal in the same currency. A syndicate official noted that European financial institutions are being tempted across the Atlantic amid more inhospitable conditions in the euro market this summer.