Latin America
Latin America Credit Markets Brief: 2 August– 16 August
The spread between Mexico's government debt and US Treasuries fell to its lowest levels in 3 years – Zuma Energia secures loan to build wind farm – Michel Temer clings to power – Elections favourable to Macri’s party – Colombia tapped the international markets – Cerro del Aguila issued international bonds – Peru's economy will likely grow 3.8% to 4% –– US enacts fresh sanctions against Venezuela…
16 Aug 2017
Brazil: An Indecent proposal
The latest tax regularization program proposed initially by the government of Brazil had merits, but its subsequent disfigurement by Congress – turning it into a kind of “default forgiveness” – is going to aggravate fiscal challenges rather than help solve them.
9 Aug 2017
Off the Record: Global Investors On Concerns and Opportunities in Emerging Market Debt
The rally in EM assets this year seems all but unstoppable as investors continue hunting for yield further afield amidst persistently low interest rates in developed markets and a weakened US dollar. Is it set to continue? Bonds and Loans speaks with global investors one-on-one about macro trends influencing EM debt capital markets.
8 Aug 2017
Paraguay’s New Finance Minister on Developing the Local Capital Markets and Green Bonds
Paraguay’s nascent capital markets sprang to life this year off the back of the country’s first cross-border bond sale in four years, part of the government’s strategy to develop the local market. The country’s industrial base and infrastructure ambitions also positions Paraguay very well for the green bond market, potentially opening the South American country up to vast new pools of liquidity.…
3 Aug 2017
Latin America Credit Markets Brief: 20 July – 2 August
Mexico’s economy continued to grow in Q2 – Brazil to freeze spending– Petrobras boss arrested on corruption charges – IMF upgrades Argentina’s growth forecast – YPF tapped the international markets with a US$750mn bond – Banco de Bogota issued unsecured notes worth US$600mn – Graña y Montero signed a syndicated loan – US imposed sanctions on Maduro – Banco General issued a 10-year bond –…
2 Aug 2017
Forget Scandals, Brazil Risks Derailing Recovery Through Fiscal Mismanagement
Brazil's fiscal crisis is becoming increasingly pronounced in the deterioration of public services and, if nothing is done, the budget deficit target of BRL139bn this year will not be met.
1 Aug 2017
Argentina: EM Urgency to Find Sustained Growth
Today, Argentinian macroeconomic discourse is focused on the most urgent: short-term themes such as the persistence of inflation, the evolution of interest and exchange rates, the speed of economic recovery, and size of the fiscal deficit. But broader progress is needed to set the country on path to sustainable growth.
31 Jul 2017
Brazil: Touching the Wound
In the midst of the greatest fiscal and unemployment crises in the country’s history, Brazil’s federal government, apprehensive about pressure from special interest groups, promised salary increases to civil servants, mainly those at the top echelons. This is perhaps the principal error of Temer’s economic policy.
28 Jul 2017
Fear and Loathing in Emerging Markets: EM Investing After the Crisis
When it became apparent, after the collapse of Lehman Brothers, that the global economy was encountering something more than just an ordinary downturn, most market observers were certain they knew what was in store for emerging markets. After all, the three decades prior to 2008 were littered with crises in developing economies from Mexico to Malaysia. Still, while the worst never came to pass…
26 Jul 2017
Signal Versus Noise: The Case of Brazil
Brazil offers a good example which illustrates the difference between signal and noise in investing. A complete mess from a journalistic perspective, Brazil has been one of the best investments in global fixed income markets and continues to offer an attractive investment proposition. We examine why countries with so much bad news can be such excellent investments.
25 Jul 2017