Latin America

Bond investors are betting that Brazilian steel producer Companhia Siderúrgica Nacional (CSN) can complete its comeback from the brink. Its bonds have rallied strongly enough for some holders to speculate a new issue may be on the cards.

Government-owned Costa Rican lender Banco Nacional de Costa Rica (BNCR) is looking to buy back a portion of its shortest-dated international bond.

Peruvian business group Alicorp may soon join the sparsely populated Latin American new issue pipeline as it looks to refinance an acquisition-driven bridge loan in the capital markets. Yet Moody’s and Standard & Poor’s have taken differing views on the transaction.

There was more bad news for Mexico’s standing in bond markets last Friday evening as S&P shocked many market participants by slapping a negative outlook on the sovereign’s BBB+ rating.

A robust balance sheet did not protect Vale from returning to junk status with Moody’s this week as the Brazilian mining company’s bonds suffered the agency’s decision to punish the borrower.

Latin American bond markets finally welcomed news of a potential issuer on Thursday as the concessionaire operating Quito’s new airport announced roadshow plans.

Brazilian mining giant Vale’s bonds led losses in emerging markets on Wednesday after Moody’s became the first rating agency to put the notes on the junk pile in reaction to a tragic dam collapse.

Emerging markets investment manager Ashmore reckons Ecuador could remain active in global debt markets despite agreeing $10bn of financing from multilateral institutions last week to significantly reduce default risk.

Colombian airline Avianca could tap investors for a new bond issue in the coming weeks as it looks to refinance an existing bond maturing in May 2020.

Latin American bond bankers were left envying colleagues covering other markets as the region missed out on strong global credit conditions with a dead week for new issue activity.

Bonds issued by Mexican state oil company Pemex have had a torrid week after support measures announced by the government did not reassure markets.

Latin America's primary bond market has had its slowest start for nine years despite strong appetite for emerging market debt. This has presented an unexpected opportunity for issuers, and those from Brazil are best placed to take advantage.