Americas
Will Mexico tow the US Fed’s line?
The Mexican Central Bank, Banco de Mexico, has already surprised markets with an interest rate hike this year. With a weakening peso and looming US Federal Reserve Policy meeting in June, followed by a Banco de Mexico policy meeting shortly afterwards, there is a possibility that Mexico could again raise interest rates.
20 May 2016
Argentina bond restrictions to limit ‘hot money’
It wasn’t so long ago that Argentina was struggling to access international investors, but after a huge surge in demand following the sovereign’s landmark issuance the country’s central bank has moved to limit foreign investors’ access to short term central bank notes in a bid to combat hot money and currency destabilisation.
19 May 2016
Rouble, Peso differ on oil despite commodity rally
The performance of the Mexican peso has differed from that of Russia’s rouble, despite both being tied to oil prices. External factors not applicable to Russia have weighed on Mexico’s currency, but despite the weaker peso, the country still has strong underlying fundamentals.
18 May 2016
Petrobras taps investors’ pockets as new window emerges
Petrobras has returned to the international capital markets for the first time in a year, paying its highest yields ever as the company looks to attract investors to refinance some of its existing mountain of debt. The country’s new government also seems to have stirred renewed interest from the investment community, which could lead to further corporate issuances in Brazil.
18 May 2016
CASE STUDY: CAF boosts capital with Eurobond at critical time for LatAm DFIs
The Latin American Development Bank has issued its largest bond this year, a US$1.25bn note, which will be used to finance regional projects across the continent. The bank, which is made up of 17 Latin American and Caribbean nations as well as Spain, Portugal and 14 private banks, plays an important role in the development of the region, particularly through the funding of infrastructure projects.
17 May 2016
The return to normalcy in Brazil
The economic stress experienced since 2014, which continues to get worse each day, has generated anxiety among society for the country to return to normalcy. Business executives and consumers once again want to be able to plan for the future, leaving behind the scenario of default, bankruptcy and unemployment.
13 May 2016
Chile readying Basel III, banking, bond market reforms
Chile is readying a series of reforms aimed at modernizing the country’s banking system and creating a more liquid bond market, the country’s Minister of Finance Rodrigo Valdes told investors this week.
13 May 2016
The floodgates open on Argentine debt
A number of Argentine sub-sovereigns have lined up bond issuances in the wake of the country’s debut debt issuance. Corporates look set to follow suit, and with many having strong credit fundamentals, demand for their debt issuances could also be disproportionally high.
11 May 2016
Could Banco de Bogota’s bond salvage weak capital ratios?
Banco de Bogota is looking to issue Tier 2 debt but the new issuance is expected to perform worse than the bank’s similar outstanding notes. A weak Colombian peso and high dollar exposure has contributed to weaker capital ratios at the bank, but the dollar exposure provides much needed funding for the bank.
11 May 2016
China eyes up more than Petrobras oil
News of the hastened signing of a planned loan from the Import-Export Bank of China to Petrobras highlights the state owned corporate’s inability to access the international capital markets, and the fact that China is looking to strengthen its presence across the emerging market landscape.
11 May 2016