Americas

The UK’s decision to leave the European Union cast extreme uncertainty over the economy, the values and even the unity of the country. Its ramifications for domestic companies’ financing capabilities has been both more obvious and more benign, however. Max Bower reports.

Canada’s low debt to GDP ratio and stable politics have made it a haven in a turbulent era in global politics. But, with fears of a wave of protectionism growing, the trade-focused country faces problems ahead. However, with its fiscal stimulus programme an example to other nations wishing to promote growth, Canada’s borrowers are confident they can adapt and prosper in the new political reality. GlobalCapital hosted this roundtable in early December.

Donald Trump’s election as US president has shaken up expectations for this year. But although Latin American borrowers are getting used to higher funding costs, 2017 could be a year of steady progression for the market, writes Olly West.

The US Commodity Futures Trading Commission has given Goldman Sachs a $120m penalty for trying to manipulate dollar Isdafix and falsely reporting benchmark swap rates.

At around €10bn Canadian banks are expected to issue the highest net volume of euro-denominated covered bonds in 2017. And, given high dollar redemptions, a favourable cross-currency swap and an active mortgage market, supply could even beat expectations.

Brazilian company Suzano Papel e Celulose, which sold green bonds both internationally and domestically this year, is keen to issue more green bonds when it has eligible projects to fund, according to the company’s CFO.

The US District Court for the Northern District of Illinois has fined Igor Oystacher and 3Red Trading $2.5m for spoofing, but did not impose a jail sentence or market ban.

Brazilian steel company Usiminas has extended the deadline for bondholders to waive the negative pledge covenant in its 7.25% dollar-denominated bonds due 2018.

The European subsidiary of US commodity trader Louis Dreyfus Company has extended the tenor of its European revolving credit facility and increased the deal by $200m, though the borrower did not tighten pricing on the loan, according to a lead banker.

Första AP Fonden, the Skr300bn government buffer fund of Sweden’s national pension system, is planning to diversity its high yield allocation in favour of the European and global high yield markets.

The return of new issuance to Latin America earlier this month means 2016 is set to end as the second largest year ever for new bond issuance in Latin America. And bankers are confident the numbers can continue to grow next year — despite external headwinds.

The stream of dollar issuance from European non-investment grade companies may thin in 2017, market participants believe, as central banks in the US and Europe further diverge their monetary policies.