LatAm Bonds

The unpredictable succession of worrying financial and economic news that has rocked global markets this year is deterring cross-border bond deals in Latin America as much as the liquidity strain itself, bankers say.

Financial market turmoil will not spark a buying spree for EM corporate debt in the first half of this year, as investors fear a further deterioration in Western credit cycles.

While the financial world is falling apart around them, public sector bond issuers continue to find support from investors globally — as long as their deals are short dated.

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Emerging markets bond wrap

Fears are growing that the exuberant bull-run for emerging market equities will come to an end this year with investors rejecting sky-high stock premiums and profitability forecasts, amid growing anxiety that emerging markets will not be spared the impact of a US recession.

Western bankers are begging Latin American borrowers to accept that the era of audaciously tight spreads and daringly price-sensitive demands has ended. Foreign investors, bankers say, are awakening to the diminishing relative value of the region’s credits.