Brazil flies high but ‘crazy’ LatAm stokes bubble fears

Brazil lit up the Latin American bond market this week with a slew of deals in advance of the World Cup kickoff. But the barrage was part of a trend far bigger than just Brazil. A wall of liquidity is being put to work, dragging LatAm bond spreads back to May 2013 levels and allowing everyone from high yield corporates to serially-defaulting sovereigns to come to market. However, as Steve Gilmore reports, some debt bankers are worried that with an end to US tapering and a Federal Reserve rate hike on the horizon, the cyclical LatAm rally is doomed to end in tears.