Commodity slump biggest coronavirus risk for Lat Am credits

Argentina, Jujuy, Salta, Salinas Grandes, Salts, LatAm, shadows
By Oliver West
13 Feb 2020

Though Latin America bond markets have so far dodged the brunt of global volatility related to Covid-19, the official name of the coronavirus outbreak, the region’s commodity dependence makes it particularly vulnerable to a China slowdown, say analysts.

Lat Am bonds have so far shrugged off Covid-19, with a slight widening in spreads more than offset by the rally in US Treasuries. Indeed, the region's borrowers continued to raise funds right up until earnings blackouts began on Wednesday.

Companies such as Femsa and Rede D’Or in the ...

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