Americas

Bond investors and analysts warned on Wednesday that there was still deep uncertainty in store for Venezuelan bondholders even if market hopes materialise and Nicolás Maduro is soon to leave the presidency. Moreover, not everyone thinks his imminent exit is a given.

South American development bank Corporación Andina de Fomento (CAF) had its first outing in bond markets on Wednesday with a new euro benchmark as it took advantage of a favourable euro/dollars basis swap.

Colombia jumped on a turnaround in sentiment on Wednesday to become the third Latin American sovereign in just over a week to receive strong demand for dollar paper.

Colombian corporates have become rare treats for bond investors but investors were able to feast on a high yield debut issuer from the country on Wednesday to give an unusual start to the Latin American corporate primary market for the year.

Investors were eager to point out that the keen sense of anticipation over regime change in Venezuela hides a reality fraught with uncertainty. But as chaos grips the country, bondholders spy long-term opportunities. Oliver West reports.

Rolls-Royce & Partners Finance (RRPF), a structured aero-engine lessor owned by GATX Corp and Rolls-Royce Holdings, has sold a $700m US private placement (PP). It’s the fourth time it has entered the market, and the second in 12 months.

Four covered bond issuers returned to the market on Wednesday and, in contrast to the start of the year when concessions were 5bp-7bp, none paid more than 2bp.

GlobalCapital is pleased to announce the nominees for its 2019 Americas Derivatives awards.

Emerging market investors are enjoying an excellent start to the year in the secondary market, but primary supply has not maintained its strong start to the year. Bankers and investors are confident that issuers will get moving soon though.

Citigroup opted to use the euro market on Tuesday for its first ever green bond, tapping into what looks to be strong investor demand for three year paper.

Five high yield bond issues were launched in the US on Tuesday, and at least a couple more are expected on Wednesday and Thursday - fruit of the sharp turnround in sentiment in the past fortnight. This is lifting the spirits of bankers in London, who are finding it very hard to encourage issuers into the market.

The end of the long weekend brought back the return of a weaker tone in bond markets on Tuesday as Latin American primary markets were silent despite bankers boasting of a reasonable pipeline.