Americas

Brazilian low-cost airline Gol Linhas Aereas Inteligentes became the latest high yield issuer from Latin America to be downgraded on Monday as recession in the region’s largest economy hit passenger demand.

Law firm Reed Smith has hired an experienced lawyer from Latham & Watkins to its global energy and natural resources group in Washington.

The global stock market meltdown caused a sharp selloff in US equities on Monday and the VIX index revealed investors’ fear of further falls.

Canada has printed a private medium term note in dollars for the first time in over a year.

The brutal sell-off that afflicted Brazilian bonds in July appears to have slowed somewhat amid the low trading volumes of August, though economic bad news and political troubles show no sign of abating.

Though this month has been one the quietest Augusts in the memory of many Latin America bankers, Peru was correct to anticipate US rate rises by issuing its first new dollar benchmark since 2010 on Tuesday, they said.

A pair of European banks took advantage of a window of issuance before the US holiday lull this week to price new dollar benchmarks.

Changes to rules governing the composition of US credit index CDX HY will improve the product’s relevance to debt markets and help address its recent disconnect from cash bonds, said market makers.

Project bond supply could be on the way from Colombia after Goldman Sachs committed to provide $1.2bn for the first leg of the financing of the country’s $25bn so-called 4G infrastructure programme.

Futures markets suggest that traders have already priced in a US September rate hike, implying that the impact of the move may not be as dramatic as once feared.

Banco ABC Brasil, a subsidiary of Arab Banking Corp (Bank ABC), has closed syndication for its $150m two year loan, increasing the deal to $200m.

Colombian oil company Pacific Rubiales’ decision to change its name may be a “milestone” for the company’s CEO but it means nothing to bondholders who appear ever more pessimistic that the issuer’s bonds will survive lower oil prices in tact.