Americas
Falabella issues inflation-indexed bonds as inflation falls
Chile’s Falabella tapped the domestic market with a dual tranche bond. As with all long term debt in Chile, the longer duration notes are inflation-indexed bonds. But a recent strengthening of the country’s peso could lead to inflation falling in the near future, which could affect demand.
6 May 2016
Brazil’s Gol is losing its wings
Gol Linhas Aereas Inteligentes is looking to restructure its dollar denominated debts amid a worsening fiscal situation, and investors on some of its debts may have to accept heavy losses. There are plans in Brazil to stabilise the country’s currency, the real, which would provide some breathing space for the company, but it is still far from certain whether this will come to fruition.
5 May 2016
Puerto Rico faces severe debt crisis
Puerto Rico is facing a severe repayments crisis. The territory has already defaulted on a large repayment due at the beginning of this month, albeit achieving slight damage limitation. A larger repayment looms in July, and it’s looking likely even holders of general obligation bonds are at risk of losing out on returns.
3 May 2016
Costa Rica issues benchmark sized green bond
Costa Rica’s central bank, Banco Nacional de Costa Rica (BNCR), has issued a benchmark sized green bond in a first for the small Central American sovereign.
29 Apr 2016
In Brazil, know your problems before you solve them
The deterioration of the public accounts in Brazil in recent years is alarming. The primary fiscal results (before interest payments on debt) were rapidly heading toward negative territory even before the collapse of revenues due to the recession. The results have not only appeared worse because of the “creative accounting” to mask the real tragedy – they simply do not give a full picture of the…
21 Apr 2016
Argentina feeds hungry investors with landmark bond sale
The Latin American sovereign has finally returned to the capital markets, demonstrating that despite some market saturation appetite for the sovereign’s long awaited debt did not dampen.
20 Apr 2016
Markets flutter on Rousseff impeachment news
Markets reacted with mixed sentiment Monday to news that Brazil’s lower house voted to back the impeachment of embattled president Dilma Rousseff. Analysts and observers contend the news will do little to boost the country’s markets until the process is driven to its conclusion, and structural reforms implemented.
18 Apr 2016
The unstable equilibrium of continuity in Brazil
Popular support for impeachment is growing, according to the latest opinion polls. But this does not mean it will be approved by Congress. Important legal and political questions exist that make the situation uncertain.
13 Apr 2016
BBH: Reasoned optimism for debt in post-election Peru
Analysts at BBH, a New York-based investment house, see many reasons to be optimistic about Peru’s economy following the first round of elections which took place in the Latin American country this week.
13 Apr 2016
Japan to triple lending for Latin American infrastructure projects
The Japanese government is looking to boost the amount it lends to Latin American infrastructure projects in a recently announced agreement with the Inter-American Development Bank (IDB).
11 Apr 2016