Brazil

Lat Am bond bankers said Brazilian mining giant Vale had timed its second bond issue of the year to perfection, but the bond left investors happy too as it popped in the grey market on Wednesday.

Brazilian firm Banco Itaú’s head of Latin American debt capital markets has left the bank, according to two sources.

Brazil underlined its re-entry to EM investors’ good books on Thursday with a $1.5bn long 30 year issue that bankers saw as taking advantage of the sovereign’s particularly flat curve.

Two high yield companies reminded bond markets that there’s life in Latin America outside of Argentina by selling dollar deals linked to liability management exercises this week.

Brazilian industrial conglomerate Cosan followed the strategy of its compatriot Petrobras on Monday, tapping recently issued bonds after a strong response to a tender offer.

Bond market participants said that the warm reception for Chilean utility Transelec’s latest issue on Thursday showed that there was huge pent-up demand for EM high grade corporates in a Lat Am primary market dominated by sub-investment grade Brazil and Argentina.

More than three-quarters of Brazilian airline Gol’s bondholders decided not to participate in a distressed bond exchange designed to alleviate the company’s debt burden, as a rally in the Brazil’s currency improved the issuer’s prospects.

Just 22% of Brazilian airline Gol’s bondholders agreed to a distressed debt exchange after several weeks of discussions, with one credit analyst saying that a rally in the real — and thus an upturn in the issuer’s prospects — meant many investors opted not to accept a haircut on their paper.

Dealers will hold an auction to settle credit default swaps referencing Portugal Telecom International Finance, after the International Swaps and Derivatives Association’s (ISDA's) EMEA Determinations Committee ruled that a bankruptcy credit event had been triggered on the contracts

The Dominican Republic and Brazilian meatpacker Marfrig jumped on favourable technicals in Latin American bond markets this week to tap, above par, bonds issued earlier this year.

Brazilian meatpacker Marfrig clinched a drive-by bond reopening on Wednesday to notch up another success in its proactive liability management programme, raising $250m of seven year bonds that it will use to buy back existing debt.

Refinancing risk for non-financial corporate bonds remains “high”, said Fitch on Tuesday, pointing out that more than $30bn of Latin American non-financial corporate bonds will mature in the next 18 months.