LatAm Bonds

On what some EM investors described as the worst day for markets since 2008, Latin American bond buyers were left staring at a sea of red as the region’s fixed income markets were stunned into dysfunction by the sharpest fall in oil prices since 1991.

The Province of Buenos Aires said on Monday that it had hired Bank of America and Citi to advise it on its debt restructuring.

Mexican hotel operator Grupo Posadas became the first Latin American issuer to suffer a ratings action as a direct result of the Covid-19 coronavirus outbreak, with both tourism industry and capital markets conditions worsening while a bond maturity looms.

Even as yields in Latin America’s top-rated credits reach all-time lows amid a US Treasury rally, volatility will likely prove too tricky for most of the region’s issuers to navigate primary markets in the short term, said bankers.

Holders of Argentine sovereign bonds have until March 16 to identify themselves to the issuers as the government prepares to restructure $67bn of foreign law sovereign bonds.

Mexican non-bank lender AlphaCredit has launched a consent solicitation, as it seeks to make amendments to the indenture governing its 2022 notes.

Mexico’s state-owned electric company Comisión Federal de Electricidad (CFE) turned to Taiwan’s bond market this week to sell a dollar bond — its latest foray into the Formosa bond market.

Chilean power generator Colbún saw its new 10 year bond rocket on the break as Latin American credit was driven tighter by a rally in global markets.

Mexico state-owned utility Comisión Federal de Electricidad (CFE) returned to the Formosa market for the fourth time on Wednesday, clinching its largest trade yet in Taiwan.

On the day that the yield on 10 year US Treasuries dipped below 1% for the first time ever, Chilean power generator Colbún batted away amid market volatility to not only reopen the Latin America new issue market but clinch the lowest coupon on its curve.

Argentina's economy ministry has appointed two dealer-managers and a financial advisor to manage the restructuring of the country’s $67bn of foreign law sovereign bonds.

China’s importance in global pulp and zinc markets puts pulp producers Suzano and Arauco — alongside Peruvian miner Volcán — among the Latin American corporates most vulnerable to the coronavirus (Covid-19) outbreak, according to Fitch Ratings.