LatAm Bonds

Latin American high grade credits tightened modestly this week, however, the near term outlook is grim as global investors reduce allocation to emerging markets and wait to see how illiquid market conditions will affect corporate solvency next year.

Ecuador’s announcement last Friday (December 12) that its 2012 bonds were ‘illegitimate’, effectively defaulting on them, had little impact on Latin America’s fixed income markets this week.