Chilean HY feels heat as Alsacia investors board restructuring bus

By Oliver West
20 Aug 2014

Latin America’s highest rated and most developed economy is proving a surprising source of concern for EM high yield bond portfolio managers this summer. Bus company Alsacia became the first firm to miss a bond payment on Monday and two other credits are trading at levels that suggest bad news is on the way.

Amid strong demand for debt, two names stand out on LatAm traders’ pricing runs: car distributor Automotores Gildemeister and retail group SMU.

B1/B rated Gildemeister, on negative outlook with both Moody’s and Fitch, has bonds due 2021 and 2023 both trading at 57 cents on the dollar. More ...

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