Americas

Following another tough day for Argentine bonds, the country’s economy minister Nicolás Dujovne clarified after market close on Wednesday that the government was seeking a stand-by agreement from the IMF.

Empresas CMPC, the Chilean pulp and paper company, is the ideal company to venture into uncertain bond market waters, syndicate bankers said after the company announced roadshow plans.

Market pressure on Argentina in recent weeks drove President Macri to take what initially felt like a radical step by roping in the IMF. But what first seemed like a horrific déjà vu is actually a sign that things are getting better in the most underperforming EM nation.

On Wednesday, US car manufacturer Ford’s finance arm followed its recent trend in using the euro corporate market to fund itself in floating rate note format. The company kept its tenors short with a pair of FRNs, but found investors had a preference the shorter option.

The strengthening dollar is wreaking havoc for emerging market bond investors as assets in local currencies and dollars alike take a hammering.

Goldman Sachs sold its largest amount of Swiss franc bonds in a single Sfr325m issue on Tuesday afternoon, encouraging hopes that the Swiss franc might be regaining its status as a global funding currency.

Primary markets in Latin America stayed silent on Tuesday amid a hefty sell-off in EM currencies, with Ecuador and Argentina continuing to provide country-specific volatility.

Investors are hedging and betting on oil prices as markets remain unsure about whether or not US President Donald Trump will pull out of the Iran nuclear deal.

A 675bp rate hike from the Argentine central bank, BCRA, on Friday finally brought some support to the peso. But the sovereign’s bonds continue to trade poorly as the currency’s recent free-fall highlighted the many vulnerabilities in the country’s economic recovery.

Central America development bank Cabei (BCIE in Spanish) has hired a new head of debt capital markets to lead its bond issuance programme.

Chinese telecommunications firm ZTE Corp, which has failed to comply with a covenant on a $450m syndicated loan due in July, has requested lenders to waive the breach, according to bankers close to the situation.

Aeropuerto de Tocumen, the airport of Panama City, was the only Latin American to raise debt in international markets this week as it raised $225m of 30 year money.