Latin America

The Province of Buenos Aires showed the resilience of demand for Argentina as it sold a $950m equivalent peso denominated bond mainly to international buyers the day after the currency hit its all-time weakest level against the US dollar.

Candy manufacturer Arcor is planning to tap its dollar-denominated 2023s for up to a further $150m in a deal that would likely sweeten the liquidity in the existing bonds.

Autopistas del Sol, a Costa Rican toll road operator, could price a 13.6 year amortising bond as soon as Wednesday, according to bond investors.

S&P became the first ratings agency to react to the latest corruption scandal in Brazil on Monday, but some large investors already think the market has overreacted to the news.

The Province of Buenos Aires could proceed with its planned peso-denominated bond as soon as Tuesday, according to an investor in Buenos Aires.

Market volatility has led the Province of Buenos Aires to pause ahead of a planned $500m-equivalent peso-denominated bond issue, but it will continue to monitor market conditions.

Brazil and Trump-related turbulence left the Province of Buenos Aires waiting ahead of a planned peso-denominated bond, though bankers say Argentine issuance should resume shortly.

Corruption accusations made overnight on Wednesday against Brazilian president Michel Temer threw EM bond markets into turmoil just as they had already suffered a torrid day on the back of a Donald Trump-provoked slump in global markets.

What, on Wednesday, seemed to be primary capital markets gung-ho for any deal imaginable by Thursday looked more like a market on the skids as concerns intensified over the endless controversies dogging US president Donald Trump’s administration.

Latin America bonds did not emerge unscathed from the carnage in broader markets on Wednesday as several weeks of strong appetite for EM bonds were interrupted by the biggest US stock sell-off in eight months.

Emerging markets bond bankers can think of nothing to derail the ongoing bull-run and while this might point to hubris, this week’s trades have given no indication of fatigue.

The Province of Buenos Aires will look to sell around Ap7.5bn ($481m) of peso-denominated five year bonds in the coming days but has surprised some market participants by opting for a domestic law bond with a floating interest rate.