LatAm Bonds

Three undersubscribed SSA dollar deals in a week drew many market participants to conclude that issuance in this sector could already be over for the year as a 10bp rally in yields and tightening swap spreads led investors to take a cautious approach towards the primary issues launched this week.

The Republic of Panama sold $1bn of 10 year bonds at 187.5bp over Treasuries on Monday, in a deal which was priced with the lowest ever yield for the country.

The Province of Ontario continued its strong run in the dollar market this week with a well-received $4bn three year global bond comprising fixed and floating tranches.

Eksportfinans, the Norwegian export credit agency, was welcomed back to the dollar market with open arms this week, its five year global bond garnering orders of $2.5bn, allowing the agency to issue $1.5bn, its largest ever deal in dollar markets.