LatAm Bonds

Bermuda’s first bond in three years traded up on Wednesday despite a mixed tone in Latin American credit markets.

Lat Am bond bankers said that Donald Trump’s floundering campaign to become US president could help Mexican borrowers as utility Comisión Federal de Electricidad (CFE) returned to bond markets with a 10 year benchmark.

Venezuelan state oil company PDVSA’s most recent attempt to exchange short-dated bonds has proven so popular that it has made the deal impossible, according to investors.

EM bond market conditions continue to attract riskier issuers, with Suriname set to meet US and European next week after spending Thursday and Friday in the Caribbean.

US based bond investors said that Argentina’s first euro-denominated bond issue for 15 years came too tight for them, as bankers said this was likely to be exactly what the sovereign had been looking for. However, the level also looked tight for yield-hungry European accounts, with the bonds trading down around a point on Thursday.

Island nation Bermuda is understood to be targeting Tuesday, October 11 to issue its first bond in three years, according to one investor, after beginning a roadshow earlier this week.

Chile-based airline LATAM announced plans to raise $500m of bonds later this month after mandating six banks to arrange a roadshow and tender offer for existing notes.

Argentine mortgage lender Banco Hipotecario announced plans to raise peso-linked bonds on Wednesday, in the second local currency transaction from the country since the sovereign exited default in April.

Argentina took a further step in its reintegration to global markets on Wednesday, selling €2.5bn of euro-denominated bonds for the first time in 15 years.

Island nation Bermuda is understood to be meeting bond investors this week ahead of a planned new dollar bond.

Argentina presented investors with a pricing conundrum on Wednesday when the sovereign came to market with its first euro-denominated deal since its 2001 default.

After a slow start to the week, emerging market investors were offered a smorgasbord of options as borrowers from four continents and across the credit spectrum launched bonds in dollars and euros.