Brazil: Punishment in the right dose is healthy

The fiscal irresponsibility in recent years has not been limited to the federal government. The state and municipal governments have also disrespected the Fiscal Responsibility Law, if not directly, at least its spirit, often with the help of the National Treasury. The bill has now come due and the state governments are pressuring the central government for some relief. Missteps can aggravate the…

8 Mar 2016

Mexico looking to PPPs for infrastructure funding

After heavy budget cuts, Mexican infrastructure projects are looking likely to get a boost from public-private partnerships (PPPs) as the country looks for new models to fund its ambitious infrastructure pipeline at a time when market conditions in the region remain precarious.

4 Mar 2016

The US$15bn question, will Argentina return?

Argentina could soon return to the international capital markets with a US$15bn bond that would pay the country’s holdout creditors. However, the yields the country is offering may not appeal to some investors, and there are also concerns over the level of debt the country is exposing itself to.

4 Mar 2016

Latin American indices up on commodities boost

Indices across Latin America have been up in trading, likely in connection with a small commodity rally that has benefitted emerging markets globally. Although many of the region’s currencies are still slightly down against the dollar, bond indices are making small gains.

3 Mar 2016

InterChile secures US$738mn syndicated loan

The loan InterChile has received is representative of the growing strength and popularity of certain emerging market economies, especially in the Latin American region.

29 Feb 2016

Peru prices €1bn Eurobond, second issuance in 4 months

The Peruvian government has priced another euro denominated bond shortly after a similar issuance last year. The move follows issuances from Chile and Mexico, whose bonds are performing better than their dollar denominated counterparts for the issuers.

24 Feb 2016

Vaquero: Brazil finally on the right side of pricing

Petrobras is now selling fuel domestically at a premium, but has a lot of catching up to do explains Wilbur Matthews, CIO of Vaquero Global Investments.

24 Feb 2016

Argentina makes new strides towards international capital markets

Argentina’s return to the international capital markets is looking increasingly likely. It has made good progress with the majority of its holdout creditors and now has a court ruling in its favour to issue debt. But even if the country does return, memories of the saga may make foreign investors unwilling to buy up the country’s debt.

23 Feb 2016

Mexico taps international debt markets with dual-tranche Eurobond

Mexico has issued yet another Eurobond. The country’s bonds are likely to perform well as a result of its favourable position in comparison with many of its Latin American peers, resulting from its close ties with the US.

19 Feb 2016

Smoke Signals: Debt In Brazil

Many analysts ask whether Brazil is in a situation of fiscal dominance, which happens when the dynamic of the public debt in proportion to GDP is perceived as explosive by economic agents. In the absence of a fiscal adjustment or a debt default, this winds up pressuring prices to the point where the central bank loses control of inflation, explains Zeina Latif, Chief Economist of XP Investimentos.

19 Feb 2016

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