Americas

Latin American borrowers rushed to new issue markets en masse on Wednesday to confirm the thesis that Brexit would have little or no effect on the region, with four issuers pricing bonds and several more likely to do so imminently.

The Republic of Argentina on Thursday made an unexpected second visit to bond markets this year to raise $2.75bn, but some investors said that anyone surprised that the sovereign had issued more debt should be comforted by the use of proceeds.

Argentine corporate Arcor sold what some bankers described as the star deal of the day on a busy Wednesday in the Lat Am new issue market. Both the confectionary company and fellow Argentine borrower Salta raised $350m of seven year money.

Brandywine Global Investment Management, which manages about $70bn in assets, has hired three for its global fixed income group.

US brewer Molson Coors didn’t miss a beat as it hopped into the European corporate bond market on Wednesday, sweeping away Brexit-related uncertainty to issue an €800m eight year bond after closing a $5.3bn deal the day before.

Refinancing risk for non-financial corporate bonds remains “high”, said Fitch on Tuesday, pointing out that more than $30bn of Latin American non-financial corporate bonds will mature in the next 18 months.

The US high grade corporate bond market has rebounded strongly following the UK’s decision to leave the European Union, after Molson Coors unveiled a multi-billion dollar M&A financing.

The RMB remained a tiny portion of payments between the US and China in May, according to the latest Swift data. Meanwhile, the RMB remained in sixth position among the most used payment currencies.

The market reaction to the UK’s surprise decision to leave the European Union has been immediate with stocks falling, the pound weakening and the country downgraded by international rating agencies. But market participants are worried that the worse has yet to come and London could be set to lose its shine as a premium renminbi hub.

Brazilian state owned lender Banco do Brasil will buy back 12.5% of its 9.25% perpetual bonds after a tender offer was oversubscribed during the early bird phase.

US and Asian regulators should hold fire on imposing margin rules on uncleared swaps to allow Europe to catch up, said the International Swaps and Derivatives Association (ISDA).

Argentina’s confectionary maker Arcor is tomorrow meeting investors in the US and London to market a $300m offering, the only active high yield deal that European investors can consider in the week after the UK's Brexit vote.