South America

The last two weeks have been the toughest in recent memory for emerging market bond investors who have seen their assets in local currencies and dollars alike take a hammering amid the collapse in the Argentine peso and Turkish lira.

Following another tough day for Argentine bonds, the country’s economy minister Nicolás Dujovne clarified after market close on Wednesday that the government was seeking a stand-by agreement from the IMF.

Empresas CMPC, the Chilean pulp and paper company, is the ideal company to venture into uncertain bond market waters, syndicate bankers said after the company announced roadshow plans.

Market pressure on Argentina in recent weeks drove President Macri to take what initially felt like a radical step by roping in the IMF. But what first seemed like a horrific déjà vu is actually a sign that things are getting better in the most underperforming EM nation.

The strengthening dollar is wreaking havoc for emerging market bond investors as assets in local currencies and dollars alike take a hammering.

Primary markets in Latin America stayed silent on Tuesday amid a hefty sell-off in EM currencies, with Ecuador and Argentina continuing to provide country-specific volatility.

A 675bp rate hike from the Argentine central bank, BCRA, on Friday finally brought some support to the peso. But the sovereign’s bonds continue to trade poorly as the currency’s recent free-fall highlighted the many vulnerabilities in the country’s economic recovery.

Two Argentine corporates postponed bond issues on Thursday as the Central Bank of Argentina’s (BCRA) attempts to control the fall in the peso proved fruitless, leaving investors asking questions about the country’s economic outlook. Oliver West reports.

Engineering and construction company Andrade Gutierrez Engenharia, one of the largest contractors in Latin America, failed to repay a senior unsecured bond that matured on April 30.

Chilean state-owned copper mining company Codelco raised $600m of 30 year money in Taiwan on Monday in the first Formosa trade from a Chilean corporate.

Brazilian oil and gas producer Petrobras will continue to tidy up its debt profile with the buy-back of two bonds due in 2020, it said on Wednesday.

Engineering and construction company Andrade Gutierrez Engenharia, one of the largest contractors in Latin America, failed to repay a senior unsecured bond that matured on April 30.