Americas

Brazilian industrial conglomerate Cosan followed the strategy of its compatriot Petrobras on Monday, tapping recently issued bonds after a strong response to a tender offer.

ISDA’s Determination Committee was in its third day of deliberation on Thursday over whether the Commonwealth of Puerto Rico has triggered a failure to pay credit event, following the island having suspended as much as $1bn of general obligation debt payments that it was scheduled to make on July 1.

US soft drinks and snacks group PepsiCo returned to the investment grade European bond market after a two year absence on Monday, clinching a very tight new issue premium.

Quantitative Brokers, a Manhattan based provider of agency algorithms for futures and fixed income markets, has added a new strategy that targets best execution around an instrument’s close or settlement price benchmark.

Latin American DCM bankers are hoping that Transelec’s blow-out bond issue on Thursday will encourage more investment grade issuers from the region to come to market, saying that deal’s success was in part down to the short supply of triple-B corporates in primary markets.

Compañía Latinoamericana de Infraestructura & Servicios (Clisa), the Argentine infrastructure group, will open books on a new seven year bond on Monday, according to a local filing.

National Australia Bank printed its biggest ever dollar trade as investors shrugged off volatility and piled into new issues.

Canadian Imperial Bank of Commerce has tapped its three year sterling covered bond at a tighter spread than it was initially priced and in a considerably larger size than the minimum it had planned.

Bond market participants said that the warm reception for Chilean utility Transelec’s latest issue on Thursday showed that there was huge pent-up demand for EM high grade corporates in a Lat Am primary market dominated by sub-investment grade Brazil and Argentina.

Bond bankers covering Latin America expect the pipeline to continue to grow even after the region’s year-to-date new issue volumes overtook 2015’s full-year total with almost six months still to run.

More than three-quarters of Brazilian airline Gol’s bondholders decided not to participate in a distressed bond exchange designed to alleviate the company’s debt burden, as a rally in the Brazil’s currency improved the issuer’s prospects.

World Bank reopened the SSA market on Wednesday with a $5bn three year dollar deal that met with a rapturous reception from supply starved, but cautious, investors.