LatAm Bonds

Investors who took a chance on an unusual ice-breaker for the 2019 Latin American corporate bond market were rewarded on Thursday as the bond was up 2.75 points the day after pricing.

South American sovereign Colombia pulled off what one banker called a textbook trade on Wednesday, finding strong demand, tightening significantly from price talk, and then seeing the notes edge tighter in the secondary.

Corporación Andina de Fomento (CAF) is planning to issue its first public green bond this year, after kicking off its 2019 funding with a euro benchmark and announcing plans to meet US investors next week.

Bond investors and analysts warned on Wednesday that there was still deep uncertainty in store for Venezuelan bondholders even if market hopes materialise and Nicolás Maduro is soon to leave the presidency. Moreover, not everyone thinks his imminent exit is a given.

South American development bank Corporación Andina de Fomento (CAF) had its first outing in bond markets on Wednesday with a new euro benchmark as it took advantage of a favourable euro/dollars basis swap.

Colombia jumped on a turnaround in sentiment on Wednesday to become the third Latin American sovereign in just over a week to receive strong demand for dollar paper.

Colombian corporates have become rare treats for bond investors but investors were able to feast on a high yield debut issuer from the country on Wednesday to give an unusual start to the Latin American corporate primary market for the year.

Investors were eager to point out that the keen sense of anticipation over regime change in Venezuela hides a reality fraught with uncertainty. But as chaos grips the country, bondholders spy long-term opportunities. Oliver West reports.

Emerging market investors are enjoying an excellent start to the year in the secondary market, but primary supply has not maintained its strong start to the year. Bankers and investors are confident that issuers will get moving soon though.

The end of the long weekend brought back the return of a weaker tone in bond markets on Tuesday as Latin American primary markets were silent despite bankers boasting of a reasonable pipeline.

Fishmeal producer Pesquera Exalmar has become the latest Peruvian corporate to opt for alternative sources of funding to refinance bonds after it used a syndicated loan to redeem its outstanding 2020s

Non-bank lender Crédito Real will show how far investor appetite for Mexican risk stretches as it looks to become the first sub-investment grade borrower from the country to issue in international bond markets in nine months.