Americas

Two Brazilian lenders have concluded buybacks of subordinated notes, with Banco Votorantim easily passing its target and Banco BMG getting close.

In the lead up to the commencement of trading for short-term VIX options on Thursday, brokers and traders are scouring for signs of market appetite for the new contracts.

Royal Bank of Canada priced one of the largest dollar covered bonds on Wednesday and despite pricing at the widest spread this year, the deal achieved better execution than was available in senior unsecured or euro covered bonds. It also showed the limitations of an illiquid secondary market for price discovery purposes, but with the real clearing level now set, others should follow.

The slowdown of its economy has not dented China’s ambitions in Latin America. However, what is changing is the profile of the projects that China is considering, especially with infrastructure

Size is still coming at a price for SSA borrowers, with European Investment Bank paying a slightly elevated new issue premium for a $4bn five year on Tuesday. Despite this, bankers said a second trade from Erste Abwicklungsanstalt confirmed the market is in robust health.

Confidence that the market has found the clearing level for euro benchmarks from all public sector borrowers in the world of eurozone quantitative easing is premature. A pulled deal by the Province of Ontario shows the need for price discovery.

Royal Bank of Canada has mandated leads for a dollar benchmark covered bond that is likely to price at a substantially wider spread than previous similar deals.

Banco ABC Brasil has become the fourth Brazilian lender and sixth Brazilian issuer to launch a tender offer for existing debt in the last month as low dollar prices make bond buybacks attractive.

With macro factors causing investors to expect the US Federal Reserve to delay rate hikes, the looming earnings announcement cycle has come into focus for volatility traders.

Low yields may have resulted in the first SSA fatality of the year after the Province of Ontario was forced to pull a 10 year euro benchmark on Monday. But some bankers suggested the issuer was simply unlucky.

With the world’s top financiers and policy makers ready to descend on Lima for the annual meetings of the IMF and World Bank this week, Peruvian finance minister Alonso Segura has said that the South American sovereign is likely to issue more frequently in international bond markets.

Brazilian meatpacker Marfrig Global Foods has hired Braskem’s popular head of investor relations to lead its investor relations and strategic planning departments.