LatAm Bonds

Just days after raising its IOF tax on foreign purchases of local financial instruments in order to curb the appreciation of the real, Brazil surprised investors and bankers by tapping its 2028 real-denominated bonds for an additional R$1.1bn ($650m). The tap marked the sovereign’s first real-denominated global issue since 2007.

Support from the International Monetary Fund bolstered peripheral eurozone credits this week, adding new momentum to a near month-long rally in Greek bonds and driving Irish, Portuguese and Spanish bonds higher too.

Fondo de Amortización del Déficit Eléctrico (FADE), the Spanish sovereign guaranteed borrower, is believed to be looking to issue a Eu2bn three or five year deal as early as next week, with pricing expected to come at around 60bp over Spanish Bonos.

null

The UK Debt Management Office will increase the size of its 4.25% Gilt due 2040 during the week beginning October 25 through a syndicated offering, it has announced.

Continued strong demand for current coupon fixed income dollar product from the sovereign, supranational and agency sector, driven by expectations of further quantitative easing and a perception that interest rates will not be going up any time soon, created a perfect backdrop for dollar SSA issuers this week.

null