LatAm Bonds

Emerging market currencies should outperform if the US enters a modest slowdown, investors have told Emerging Markets, EuroWeek’s sister publication — but all bets are off in a US recession.

Ecuador has met a $135m coupon payment on its Global 2030 bonds, which was due on Wednesday 15.

There was no respite for Latin American markets this week, with stocks and bonds tumbling still further. The worst came in yesterday’s (Thursday) emerging market bloodbath — Mexico’s stock market was slashed 5.7% by midday and Brazil’s Bovespa was down more than 8% in the morning. Even after an afternoon recovery, the Bovespa still closed down 2.6%.

Emerging market assets are set to outperform in the coming months, despite the recent exodus of crossover investors on fears of a US credit crunch, leading investors told EuroWeek’s sister publication Emerging Markets this week.