LatAm Bonds

Brazil’s local debt markets are clogged up as bankers wait on firmer conditions and issuers come to terms with repricing — but analysts say Brazil’s banks and companies have the funds to see out the freeze.

The World Bank stunned the bond market on Tuesday when it announced a $1bn five year global bond to be priced at a spread of mid-swaps less 35bp, the tightest ever level any issuer has attempted for a five year public bond.

The government of Argentina confirmed on Monday that it has made an agreement with Barclays, Citibank and Deutsche Bank for a new exchange of its defaulted bonds. But as the emerging markets sell-off reaches new lows, it could prove impossible to get a deal to market.