LatAm Bonds

The first tier one bond from an emerging market borrower this year generated an order book of $13bn, allowing Banco do Brasil to print $1.5bn at 8.5%, equivalent to 518.8bp over Treasuries, on Tuesday night.

Extension risk has until now been the main concern for investors in Dutch securitisations. The collapse of retail bank DSB on Monday threw several more risks into the limelight and promises to set important precedents for market practice.

Banco do Brasil is expected to price a perpetual non call 11 year hybrid tier one issue on Tuesday, ahead of schedule, after getting exceptionally strong demand for the deal. Pricing had been pencilled in for the middle of this week.

World issuance of corporate bonds has exceeded the volume of syndicated lending for the first time ever, according to Dealogic.