LatAm Bonds

Central American development bank Cabei will look to price its first Australian dollar bond on Thursday after announcing price guidance of 180bp over ASW for a proposed 10 year deal.

After a slight recovery in Latin American credit markets on Wednesday, Latin American bond bankers said the region’s borrowers should be ready and waiting to issue as soon as a window becomes available.

Just one-fifth of Mexican corporate bond issuers are likely to escape unscathed from US president-elect Donald Trump's proposed trade protectionism policies, said Fitch on Monday.

In the space of a week, emerging market debt markets have experienced what psychologists call the seven stages of trauma, after the election of Donald Trump as US president. Markets had priced in an 85%-90% chance of a Hillary Clinton victory.

Banco Santander Chile has responded to a reverse enquiry by printing a Sfr125m ($125m) May 2025 bond. Riding off Chilean reputation in the Swiss market, and a scarcity of LatAm offerings this year, the lead managers kept the tickets tightly priced.

Central American sovereign Belize could be forced into a restructuring or exchange of its so-called “super-bond” due 2038 after it said it was looking to meet bondholders to discuss the country’s “serious economic and financial challenges”.

Donald Trump’s shock victory in the US presidential elections was no obstacle to Santander’s Chilean arm as the bank became the first issuer from the South American country to raise financing in Taiwan’s Formosa market.

Donald Trump’s shock victory in the US presidential elections was no obstacle to Santander’s Chilean arm as the bank became the first issuer from the South American country to raise financing in Taiwan’s Formosa market.

Bankers said that none of the three names in the visible Lat Am pipeline would be likely to issue any time soon as a sell-off in US rates brought sudden volatility to EM bond markets, even in economies not considered affected by a Donald Trump presidency.

The benign reaction across capital markets to Donald Trump's surprise US presidential election victory did not spread as far as Latin America. A brutal sell-off on Thursday further complicated an already tough picture for Mexican issuers facing uncertain times as participants wonder just how badly a Trump presidency could affect the country, writes Oliver West.

Lat Am bond market participants held varying views on just how bad the market reaction to Donald Trump’s victory in the US elections had been on Wednesday, but most agreed that issuance plans across the region would be on hold for a while as debt prices tumbled.

Remarkable resilience in the face of an uncertain future was the tale of emerging market bond prices on Wednesday as Donald Trump won the presidential election in the US, much to the surprise of EM traders themselves, who expected the risk aversion to last much longer. But the outlook for EM bonds under a Trump presidency is far from rosy. Latin America has been the clear underperformer so far but more pain is expected.