Americas
Eldorado: Another fish hooked in Brazil
The ongoing corruption scandal in Brazil has put off investors, with yet another company falling foul of the authorities. Corruption scandals alone are not likely to put off investors, and recent events could signal a turning point in the ‘car wash’ scandal, which would only aid investment.
5 Jul 2016
Brazil: Caution Over The Signs
The confidence indexes of executives in various economic sectors as well as of consumers have stopped sinking and started to show signs of recovery. Since these indexes are leading indicators of the future behavior of the economy (reversals in the pattern of confidence indexes precedes reversals of the activity indicators), there are reasons for a feeling of relief. But a certain dose of caution…
4 Jul 2016
As Argentine pipeline swells to nearly US$4bn, investors question value
Following a spate of sovereign, quasi-sovereign and corporate issuances, Argentine entities continue queuing up to tap the market, with the pipeline now swelling to nearly US$4bn. Though there are few signs asset managers are getting “full” on the country’s debt, some are beginning to question whether the sovereign’s credit rating is holding many of its corporates back.
1 Jul 2016
Fibria’s CRAs popular with hungry investors
Fibria has issued CRAs in the Brazilian local markets which were well received by investors. The significant demand stems from the fact that CRAs are rarer than other issuances due to their complex structures, alongside the company’s strong credit rating.
30 Jun 2016
CFO View: Claudio Chamorro, Parque Arauco
Claudio Chamorro currently serves as Chief Financial Officer at Parque Arauco. He previously served as Director of Studies and Financial Analysis of the Superintendency of Banks and Financial Institutions, Chile. He has served as both Market Risk Manager, and later CFO, of Banco CorpBanca, Chile’s third largest bank, and served as Corporate Development Manager at Corpgroup, leading M&A, bond and…
30 Jun 2016
LatAm high-yield burdened by upcoming maturities
Latin American high yield corporates from a number of sectors and countries face a high volume of maturing debt over the next two years. Brazilian entities are likely to suffer worse than others due to the economic climate in the country.
29 Jun 2016
Not everything that falls goes up
It is natural for a country’s investment cycle to be more volatile than the GDP cycle, since investment decisions are more affected by the overall economic picture than by household consumption or government spending, which are more stable.
22 Jun 2016
Leverage weighing on some Brazilian corporates more than others
Brazilian companies are facing rising debt leverage ratios due to a volatile currency and low economic growth across the country. Although the telecoms company Oi has filed for bankruptcy, from which it could struggle to return, other telecoms investments remain positive, much more so than in the country’s aviation sector, where Gol is also struggling to refinance its debt.
21 Jun 2016
Standing out amongst Argentine debt
There are an increasing number of issuers coming to the market in Argentina. Whilst high quality corporates will not be too significantly affected by the skewed pricing that has resulted from the number of issuances, smaller corporates and provinces may need to offer significant yields to attract demand.
20 Jun 2016
Fallout spreads from Brexit bomb
Investor concerns over Brexit are causing short term volatility in LatAm assets, and the long term effects of Brexit could cause global volatility in the region and beyond.
14 Jun 2016