LatAm Bonds

Goldman Sachs sparked the ire of Venezuelan opposition supporters and several bond investors this week as it bought $2.8bn of PDVSA bonds at a hefty discount that put the yield at 40%.

Central American sovereign Guatemala sold $500m of dollar bonds on Wednesday in a deal that came roughly flat to its curve.

Ecuador attracted $4.2bn of orders on the way to a $2bn bond sale on Tuesday as bond investors continue to lap up the small South American country’s hefty debt issuance.

Moody’s followed Standard & Poor’s in placing Brazil’s credit rating on negative outlook on Friday, but both agencies have reaffirmed Petrobras’ rating as analysts say they expect the state-owned oil company to gain ground on its sovereign parent.

The Province of Buenos Aires gave a taste of the possibilities available in Argentina’s domestic market on Tuesday with an innovative peso bond targeted at international investors that left the province’s undersecretary of finance more than satisfied.

Autopistas del Sol, the concessionaire of Costa Rican highway Globalvia Ruta 27, sold $300m of 13.6 year amortising bonds on Wednesday as Latin America new issue markets continue to function despite political turmoil in Brazil.

LatAm bond market participants said contagion from the latest Brazilian corruption crisis had dissipated this week as new issuance returned to the region and spreads recovered within and outside Brazil.

Autopistas del Sol, the concessionaire of Costa Rican highway Globalvia Ruta 27, sold $300m of 13.6 year amortising bonds on Wednesday as LatAm new issue markets continue to function despite political turmoil in Brazil.

The Province of Buenos Aires showed the resilience of demand for Argentina as it sold a $950m equivalent peso denominated bond mainly to international buyers the day after the currency hit its all-time weakest level against the US dollar.

Candy manufacturer Arcor is planning to tap its dollar-denominated 2023s for up to a further $150m in a deal that would likely sweeten the liquidity in the existing bonds.

Autopistas del Sol, a Costa Rican toll road operator, could price a 13.6 year amortising bond as soon as Wednesday, according to bond investors.

S&P became the first ratings agency to react to the latest corruption scandal in Brazil on Monday, but some large investors already think the market has overreacted to the news.