LatAm Bonds

Investors who have had their fingers burned by the collapse of Lehman Brothers and the effective nationalisation of AIG, and their nerves fried by the takeover of Merrill Lynch and HBOS, are unlikely to forget the experience in a hurry. The week’s events will have long lasting repercussions for the financial institutions bond market.

In the short term, the market for new issuance is shut tight. "The cancellation of Telemar’s bond last week was a shock to the system," said one strategist. "That was as blue chip a company as you can get in this market."