Latin America

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.

Bond investors in Latin America appear happier to be stretched by tight pricing than hairy credit quality after Brazilian state oil giant Petrobras pulled off an exceptionally tight bond return on Monday.

The provinces of Buenos Aires and Mendoza are planning to join the list of Argentine issuers opting to sell peso-linked debt after recent deals by YPF and Banco Macro.

A blow-out deal from Argentine energy company Capex reassured Latin American bond bankers that the market had shrugged off a handful of deals that did not run as smoothly as hoped.

Mexico City-based DCM bankers say that the mood among the country’s financial community has drastically improved since the start of the year, as Unifin on Wednesday became just the fourth Mexican credit to issue dollar debt in 2017.

Brazilian electricity company Cemig will return to bond markets towards the end of the month. It had failed to garner sufficient investor interest before its earnings numbers went stale.

Latin American bankers see a calmer period ahead for corporate new issues and some companies are already plotting deals for later in the quarter.

Argentine energy company Capex and Mexican financial Unifin showed that conditions were as strong as ever in Latin American bond market as both high yield names notches blow-out new issues.

Mexican financing and leasing company Unifin Financiera raised $450m of seven year bonds on Wednesday as bankers’ hailed the company’s improving reputation in the market.