Americas

Equity investors are priming themselves for the US Federal Reserve to cut the Federal Funds Rate after dovish comments from the Fed’s chairman, Jerome Powell.

The chief financial officer of Avianca Holdings told GlobalCapital that he is in near daily discussions with export credit agencies (ECAs) to resolve two separate issues and thus allow the Colombian airline to return to bond markets to refinance a $550m bond maturing in May 2020.

The US Federal Reserve and European Central Bank were jockeying for the SSA market’s attention this week, after the Fed governor hinted on Tuesday that the it might cut US rates. Investors are showing caution before wading into new deals

Dennis Eisele will become Credit Suisse’s head of Latin American debt capital markets in August after he ended a 19 year stint Deutsche Bank, according to an internal memo seen by GlobalCapital.

Central American multilateral Cabei (Central American Bank for Economic Integration) has issued a request for proposal (RFP) for a potential first dollar benchmark since 2012, Latin American bond market participants told GlobalCapital.

Peripheral and UK covered bonds have weakened amid broader deterioration in credit market conditions. But with activity muted the main focus is on Tuesday’s Euromoney/ECBC Covered Bond Forum in Toronto.

In this round up, the Ministry of Commerce (MoC) is planning to publish a list of ‘unreliable entities’, clearly echoing the US’s ‘entities list’, the State Council issued a white paper detailing China’s stance on trade tensions, and the People’s Bank of China (PBoC) said its takeover of Baoshang is a ‘one-off’.

Spreads on Latin American bonds widened sharply on Friday after US president Donald Trump said he would enforce tariffs on Mexican imports, with recent issues from the region losing ground.

In this round up, China floated rare earth exports as a weapon in its trade war with the US, May’s PMI fell across the board and the People’s Bank of China (PBoC) activated a fund to protect domestic depositors’ savings

Sub-investment grade sovereign Dominican Republic clinched a 30 year dollar deal with a slim concession and sold a local currency tranche on top as Latin American DCM bankers say risk appetite remains high despite broader market volatility.

A committee of Barbados bondholders claiming to own over 55% of the island nation’s US dollar bonds has warned the government that it will reject any “unilateral offer” that may emerge from restructuring negotiations.

Chile is looking to become the first sovereign from Latin America to issue a green bond, finance minister Felipe Larraín said on May 30.