LatAm Bonds

A Eu4bn three year bond for the Republic of Ireland this week threw into stark relief the price peripheral sovereigns have to pay to meet their growing funding needs in these turbulent times.

The month long sell-off of emerging market bonds reversed this week, with four days of recovery bringing bond spreads and CDS prices in from recent highs.

Supranational and agency spreads widened dramatically again this week, by 20bp-40bp, leaving those issuers with funding still to do in a parlous state. But while most borrowers accept that the heady levels achieved earlier this year are history, they are optimistic that the market will improve before they have to come to market.