LatAm Bonds

One of the Venezuela analysts most keenly followed by the country’s bondholders will lead opposition candidate Henri Falcón’s economic team in the run up to this year’s presidential elections, which the largest opposition party is boycotting.

After weeks of speculation, Paraguay will finally hit the road next week as Lat Am syndicate bankers point out that spreads in the region have recovered well after a turbulent month.

Recent hints from Ecuador’s finance minister Carlos de la Torre that the South American sovereign is considering a euro-denominated bond issue should be met with caution, according to a report from Quito-based Analytica Investments.

Mexican funding officials will visit Tokyo next week to update Japanese bond buyers, GlobalCapital understands.

In the wake of Venezuela’s launch of petro, an oil-backed digital currency under the control of the nation’s central bank, a host of sovereign cryptocurrency products have emerged. For some nations, it is a ploy to circumvent sanctions but, for others, it could provide an important piece of future infrastructure for blockchain based settlement.

Latin American sovereign Mexico will be visiting Tokyo next week to update Japanese bond buyers, GlobalCapital understands.

Emerging market bonds have been buoyed by several positives in key markets this week including a cabinet reshuffle in South Africa that has seen the return of respected former finance minister Nhlanhla Nene, and the upgrade of Russia to investment grade by S&P.

Recent hints from Ecuador’s finance minister Carlos de la Torre that the South American sovereign is considering a euro-denominated bond issue should be met with caution, according to a report from Quito-based Analytica Investments.

After yet another quiet day in Latin American bond markets on Monday, syndicate bankers said that the return of new issuance after a more than two week hiatus would likely commence after two key speeches from Jay Powell, the new US Federal Reserve chair.

Colombia’s bonds have hardly moved in secondaries since Moody’s placed its Baa2 rating on negative outlook last week, although the sovereign’s debt had already widened heavily over the last few weeks.

Venezuela’s cryptocurrency plans were met with a dismissive reaction from Lat Am bond market participants this week, who questioned the value of any currency issued by the defaulting government.

At least two Latin American borrowers opted to delay new issue announcements this week as syndicate bankers suggested the names in the pipeline would be more demanding on pricing than their CEEMEA counterparts that did issue.