LatAm Bonds

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.

Mexico’s new head of public credit, Gabriel Yorio, has told GlobalCapital investors were receptive to the government’s messages, after it received hefty demand for its first bond issue since Andrés Manuel López Obrador took office as president on December 1.

Caribbean telecoms group Digicel has finally wrapped up a distressed debt exchange to avoid a potential default next year, after extended negotiations with bondholders. But Fitch warned on Monday that the move has “undermined” the group’s position with creditors.

Brazilian building materials company Votorantim Cimentos is looking to buy back up to $650m of outstanding bonds using funds that its parent company is set to receive from the sale of its stake in pulp and paper company Fibria.