LatAm Bonds

Argentina’s issuers are wasting no time returning to international capital markets after Mauricio Macri’s victory in the November 22 presidential elections, though Lat Am bond bankers warned that tough times remained ahead for the country.

Bond bankers say that Mexican government-owned oil company Pemex will have to overcome fears that European investors have over emerging market and oil related names as it looks at issuing its second sterling bond.

Mexican real estate investment trust Fibra Uno was forced to issue less than it was hoping for this week, in a deal that exemplified the new reality to which Latin American issuers — even the well-liked, solid credits — must become accustomed.

Mexican government-owned oil company Pemex held an investor call on Wednesday morning ahead of a planned sterling-denominated trade.

Brazil iron ore pellet producer Samarco Mineração’s bonds hit the mid 30s on Tuesday as Fitch reduced the borrower’s rating from BBB to BB- a month after two of the company’s dams burst in the state of Minas Gerais, causing heavy human and environmental damage.

EM bond investors said that Fibra Uno’s latest dollar issue represented great value for such a strong credit as the deal tightened several basis points in the aftermarket.

Latin American bond markets had a poor first day of trading after the Thanksgiving break, giving Mexican real estate investment trust Fibra Uno a tough ride withn its second international issue.

André Esteves resigned from his positions as chairman of the board and chief executive of BTG Pactual on Sunday following his arrest on November 25 as part of Brazilian authorities’ investigation into corruption at Petrobras.

Dr Alberto Torres García, head of economic research at Mexico's central bank, is to take over from of Alejandro Díaz de León as head of the country’s public credit as Díaz de León leaves to take run development bank, Bancomext.

Banco Nacional de Desenvolvimento Econômico e Social (BNDES) has bought back $640m of senior unsecured notes at a discount, taking advantage of sub-par dollar prices and its strong cash position to reduce its debt burden.

The arrest of BTG Pactual’s chairman and chief executive dragged the Brazilian banking sector into the Petrobras corruption investigation this week, as bond market participants said fears were running high that Lava Jato would uncover even more skeletons in the closet.

Argentina will offer a rare high point for Latin American new issuance volumes next year, predict bankers and investors, after voters in South America’s second largest economy elected the most business friendly candidate as their next president.