LatAm Bonds

Morgan Stanley is this year heading Dealogic’s table of Latin America bonds by volume, having finished last year in 10th position. At this time last year it was not in the top 10 at all.

Mexican hotel operator Grupo Posadas saw its $350m seven year deal trade up on Friday as bankers said that there was still demand for high yield despite the sub-investment grade segment of the Latin American market suffering its worst year in terms of new issuance since 2009.

Venezuelan state oil company PDVSA’s plans to raise Chinese yuan-denominated bonds show that the beleaguered nation is unable to raise financing from its traditional markets, said investors.

Mexican hotel group Grupo Posadas brought the lowest rated deal to Latin American bond markets since April, and despite it not being a blow-out bankers said any high yield supply was positive.

While Colombian state oil giant Ecopetrol made the most uncontroversial return to bond markets possible this week, Pacific Rubiales — the largest independent oil group in the South American country — saw its bonds take another plunge in a highly volatile year.

Colombian state oil company Ecopetrol on Tuesday notched up a deal that bankers saw as going as well as could be expected given a less than vibrant market and that it was the borrower’s first issue since oil prices began to fall.

Peruvian government owned development bank Corporación Financiera de Desarrollo (Cofide) will begin meeting fixed income investors ahead of a possible return to bond markets.

Colombian state oil company Ecopetrol on Tuesday made its much anticipated return to bond markets for the first time since oil prices began to plunge, and priced a solid deal amid headwinds.

Bond bankers covering Latin America fear summer has come early for new issuance from the region as lack of use of proceeds has decreased the need for new financing.

Bonds of Brazilian construction giant Odebrecht Engenharia e Construcão plummeted on Friday after the arrest of the company’s head and other executives.

LatAm bond market participants said high yield new issue volumes would remain depressed in the region unless Mexico takes up the slack from Brazil’s shaken sub-investment grade sector.

Paraguay looks set to build on its upward ratings trajectory after Standard & Poor’s placed its BB rating on positive outlook thanks to the country's greater resilience to the weak economies in the region.