Latin America

Defaulting Caribbean sovereign Barbados could end up forcing a 50% principal haircut on bondholders in its restructuring, said Exotix this week, as investors worried that an overly aggressive approach from the island nation would see it lose market access for the foreseeable future.

When it finally came, the result of the election that markets had feared all year in Mexico was comprehensive. But the reaction was underwhelming.

Defaulting Caribbean sovereign Barbados could end up forcing a 50% principal haircut on bondholders in its restructuring, said Exotix on Wednesday, as investors worried that an overly aggressive approach from the island nation would see it lose market access for the foreseeable future.

Juan Carlos Varela, the president of Panamá, named Eyda Varela de Chinchilla as finance minister on Tuesday after Dulcidio de la Guardia resigned despite apparently impressive results.

South American sovereign Ecuador’s latest finance minister says that he does not want the country to return to bond markets, in an abrupt turnaround in policy for one of the region’s most prolific issuers.

As left-wing candidate Andrés Manuel López Obrador eased to victory in Mexico’s presidential elections last night, investors are wondering just how insistent he is likely to be with some of his more disruptive policy proposals.

A group of investors owning bonds of Venezuela and state-owned oil company PDVSA want creditors of the two issuers to be treated equally.

Chile interrupted the quiet in Latin American bond issue markets on Thursday when it proceeded with a dual tranche peso deal, immediately after wrapping up a roadshow.

AES Gener, the Chilean utility, wants to buy back up to $200m of bonds using cash in hand, it said on Wednesday, as its commitment to reducing leverage looks set to save its investment grade rating.

AES Gener, the Chilean utility, wants to buy back up to $200m of bonds using cash in hand, it said on Wednesday, as the company’s commitment to reducing leverage looks set to save its investment-grade rating.

Factors internal and external to the emerging markets are this week combining to stymie new issuance.

A group of investors owning Venezuela sovereign bonds and notes issued by state-owned oil company PDVSA want creditors of the two issuers to be treated equally, as analysts point out that the sovereign debt is outperforming that of the oil company.