Americas

Some equity investors are hoping for a surprise gift before year-end if Donald Trump strikes a deal with Chinese president Xi Jinping at the G-20 summit in Buenos Aires to end trade hostility between the two nations, but they're clutching at straws.

Odebrecht Engenharia & Construçäo finally admitted defeat in its attempt to avoid default on Monday, as it acknowledged it would not be making a $11.5m coupon payment due on its $519m of 4.375% bonds due 2025, paving the way for a restructuring.

Bonds issued by central American sovereign Costa Rica rallied as much as four points on Monday after the country's constitutional court gave investors a positive surprise, approving fiscal reform that should improve market confidence in the borrower.

Colombo-Canadian oil company Frontera Energy managed to persuade 91.16% of its creditors to approve an amendment in its bond indenture that will allow it to make larger payments to shareholders.

African Development Bank and Nederlandse Waterschapsbank hit screens on Monday for SRI bonds. Meanwhile, CPPIB Capital will aim to issue its first green bond in euros early next year, following the conclusion of a pan-European roadshow last month.

Central American development bank Cabei (Central American Bank of Economic Integration) sold $100m of dollar bonds to Japanese insurance companies earlier this month to complete its financing needs for 2018, the lender said.

In this round-up, People’s Bank of China (PBoC) signs a currency swap with Indonesia, Shanghai and Shenzhen Stock Exchanges publish rules to limit the length of trading halts, and the Chinese authorities publish new rules to boost the domestic free trade zones (FTZs).

In a shortened week in the US there was still time for heavy volatility in Lat Am bond markets, with sharp moves in Mexico particularly concerning for DCM bankers.

Some Latin American DCM bankers think the year is over for new issuance, and several are indeed wishing it already were. Though much of what put the brakes on in Lat Am this year will continue to affect the market in 2019, bond bankers should find reasons to believe January will be better.

Another bruising week for equities is testing frayed nerves in equity capital markets, with this week’s US tech-stock sell-off adding to worries about issuance in 2019, writes Sam Kerr.

Investors have become more cautious about a popular derivatives volatility trade amid concerns of increased US equity turbulence in the weeks and months to come.

Takeda Pharmaceutical, the Japanese firm buying UK rival Shire, defied tough market conditions to press ahead with a $5.5bn trade to help fund its $62.5bn acquisition ahead of the Thanksgiving holiday.