Panama, Paraguay pay limited concession as 10 year emerges as sweet spot

Paraguay, Asunción, 575, LatAm, government
By Oliver West
21 Jan 2021

Bond markets continue to offer Latin American sovereigns tight pricing down the dollar curve, with Panama and Paraguay on Wednesday becoming the latest pair to price dual tranche deals. But with rates curves having steepened this month amid the expectation of higher rates in the long term, bankers are sensing that the 10 year is becoming the sweet spot on the maturity curve.

Like Chile and Colombia before them, Panama and Paraguay paid minimal or negative concessions on both their tranches on Wednesday, but were able to generate particular price tension in the shorter-dated notes. In Panama’s case, this was a 2032 tap, while for Paraguay’s shorter tranche on the day was a ...

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