LatAm Bonds

Industrias Peñoles announced on Tuesday that it will return to the bond market in September after a seven year absence. One investor called the mandate a “healthy sign” ahead of the September opening of the primary market.

Bond investors say that market sentiment in Latin America has emerged mostly unscathed from brutal sell-off in Argentine assets over the last two weeks and that the tone should be positive going into a busier period in September.

Ecuador’s sovereign bonds traded up on Wednesday as Fitch removed the borrower from negative outlook on the back of lower short-term financing risks.

Argentine sovereign bonds closed broadly flat on Tuesday as the central bank governor and new finance minister appeared to say the right things to appease markets and the IMF confirmed it would visit the country soon.

Mexican lender Banco Mercantil del Norte (Banorte) is looking to sell its third Swiss franc bond, breaking a two-week hiatus in cross-border issuance from Latin American borrowers.

Downgrades from two rating agencies crowned a disastrous week for Argentine assets, and there was no relief over the weekend as the finance minister resigned and the country’s likely next president appeared to hint at the possibility of debt restructuring.

A surprise result in last Sunday's primary elections in Argentina triggered hefty losses for emerging market investors this week. Many feared another sovereign default as Argentina assets, and its currency, took an absolute kicking. But by Thursday, writes Oliver West, some felt that bruised and battered investors could be missing out on a chance to snap up cheap assets.

Colombian airline Avianca is offering bondholders the chance to swap unsecured bonds at par for new secured debt as it looks to stave off a looming maturity and clinch $250m of shareholder funding. The airline’s CFO said on Thursday that he felt positive the exchange would go ahead in its existing form.

Colombian airline Avianca is offering bondholders the chance to swap unsecured bonds at par for new secured debt as it looks to stave off a looming maturity and clinch $250m of shareholder funding.

Bonds issued by Colombian financial holding company Gilex and its subsidiaries widened on Tuesday as the lender’s proposed acquisition of BBVA’s Paraguayan bank triggered a downgrade review from Moody’s.

As Argentine assets endured a torrid Monday on the back of Mauricio Macri’s poor performance at the weekend’s primary, analysts warned that the peso’s harsh devaluation would push public debt — which is largely in hard currency — up to perilous levels. This could accelerate a sovereign default, said Capital Economics.

Bond market analysts said that conversations about Argentina assets would return to the likelihood of default as market-friendly president Mauricio Macri suffered a heavy defeat in Sunday’s primary elections.