Latin America

A shift of momentum in the US presidential race has sent tremors through derivatives markets this week, with equity implied volatility ramping up, credit index spreads widening and the Mexican peso slumping against the dollar.

Argentinian debut international issuer Compania General de Combustibles (CGC) raised $300m on Wednesday, and while it offered a large pick-up over the sovereign, rival bankers were impressed that investor demand has extended to lesser known names in the region.

Banco Macro printed the largest Basel III compliant tier two bond from Argentina on Tuesday, slipping into the market with a yield palatable enough to attract a $900m book, even as investors begin to lower the amount of risk they are exposed to before year-end.

Colombia’s Pacific Exploration & Production announced on Tuesday that all conditions had been met on a corporate restructuring plan that will allow the oil company to leave creditor protection.

Colombia window manufacturer Tecnoglass began meeting bond buyers on Tuesday ahead of a potential dollar market debut.

Colombia’s second largest lender, Banco de Bogotá, was able to tighten pricing on the tap of its existing tier two bonds by 30bp on October 28 as bankers said the issuer had attempted to generate strong demand with very generous initial price thoughts.

Eastern Argentine province Entre Ríos looks set to continue the run of Argentine provinces tapping international bond markets after announcing a roadshow beginning October 31.

Venezuelan state oil giant PDVSA finally wrapped up an exchange of bonds due 2017 for longer dated paper last Friday, but analysts said that the effect on the company’s credit quality in the medium term was negligible or even negative.

Choppy market conditions on Wednesday and Thursday did not prevent Trinidad Generation Unlimited (TGU) from pricing its debut dollar bond issue after notching a four times oversubscribed book.

Trinidadian generation company Trinidad Generation Unlimited (TGU) released initial price thoughts for a new bond with a 10 year average life on Wednesday.

Argentine province Santa Fe’s debut international bond issuance on Tuesday made it the second tightest sub-sovereign name in the Argentine credit spectrum as the region’s low leverage levels allowed it to price just 50bp wide of the City of Buenos Aires.

Mexico raised completed the financing of all its external debt obligations for 2017 on Tuesday, selling €1.9bn of long eight and 15 year bonds in its second euro-denominated bond of 2016.