LatAm Bonds

This week’s 32 year syndicated linker from the UK flew in the face of bad news on the country’s economy and negative rating actions by Moody’s on other triple-A countries.

Ireland raised €5.23bn in its bond sale and bond switch on Thursday, a result that reflected growing investor confidence in the country’s eventual return to financial health. It marks the first time Ireland has sold new long-dated government bonds since it entered the European Union bail-out programme in September 2010.

Shortage of supply and generous pricing helped ensure successful dollar debuts for a pair of Latin American high yield names this week, but it was Corporación Azucarera del Perú (Coazucar) that took the palm with a 10 times subscribed 10 year transaction.

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ICA, a single-B rated builder, tapped strong post-election demand for Mexican paper this week but bankers warned against interpreting the deal’s success — or the announcement of a trio of roadshows for riskier names — as a sign that the high yield market is ready to reopen.

The European Financial Stability Facility (EFSF) reasserted itself as a stabilising force in European bond markets this week, proving it had market access for jumbo transactions by printing its largest ever bond.

The Japan Bank for International Cooperation (JBIC) offered investors a rare opportunity to buy Japanese government guaranteed (JGG) debt on Wednesday when it issued a $2bn five year global bond.