LatAm Bonds

Banco Santander’s Chilean yesterday sold the first ever floating rate note in Chilean pesos, raising Ps75bn ($114m) in long three year notes.

Bonds from major Mexican issuers tightened on Monday after the USA and Mexico announced a preliminary bilateral trade to replace the North American Free Trade Agreement (Nafta).

New US sanctions announcements on Russia, chatter around new IMF financing for Angola and a desperate economic recovery plan in Venezuela are keeping those emerging market portfolio managers still at their desks busy. But low volumes are playing havoc with EM secondary levels as traders embrace the quietest trading week of the summer.

Venezuela has adopted a radical approach in its attempt to rein in its out-of-control economy, effectively devaluing its currency by almost 96% and pegging the value to Venezuela’s oil-backed pseudo-cryptocurrency — widely considered a scam.

Fitch Ratings has downgraded Ecuador from B to B- on the back of its rapidly rising debt burden, even though the country finally has a finance minister popular with bond investors.

The drought in Latin American new issuance stretched to six weeks by Thursday, but DCM bankers are now more concerned by prospects for September after contagion from Turkey hit Lat Am assets this week.

Venezuelan state oil company PDVSA saw its 8.5% 2020s drift back upwards this week after taking a hit on the back of a US court ruling that caused some concern about bondholders’ ability to claim their collateral.

Another month, another set of headlines to scare even the most resolute of EM investors. Yet it is nearly time for Latin American primary markets to make a comeback, and issuers shouldn't let their plans get derailed.

Some Latin American bond bankers said that a soft day in the region on Wednesday was even more worrying than Monday’s havoc as spreads continued to widen despite Turkish assets rebounding somewhat.

A broad emerging markets sell-off triggered by worries over Turkey's economic future could spoil what should be a busy September for Latin America primary markets, fear DCM bankers.

Another month, another set of headlines to scare even the most resolute of EM investors. Yet it is nearly time for Latin American primary markets to make a comeback, and issuers shouldn't let their plans get derailed.

Developing markets investment bank Exotix believes that Argentine power company Albanesi’s 9.625% 2023s are “money good”, despite a rapid fall in bond prices after the company’s CEO was arrested.