No longer at the centre of the financial crisis as in times past, Latin America has been relatively resilient amid the storm generated by the US credit crisis. On the contrary, the region has been seen as a sort of safe haven, given the strong fundamentals, deepening local markets and upward ratings trajectories in countries like Brazil, Peru and Colombia. But this decoupling theory could start to look flimsy as the situation in the US goes from bad to worse; and it will be put under even more strain in coming months. The relative value...Read more
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Latin American markets are more popular than ever and investors agree they display a degree of maturity suggesting allocations will be stickier than in the past. But with the more developed markets experiencing a rocky 2008, it will not be long before this theory is put to the test. Solomon Teague reports.
Enthusiasm for LatAm local currency debt has yet to wane despite heightened volatility in the international markets. It has proven a good bet so far, outperforming most asset classes in the EM universe and acting as a counter-balance to the free falling European and US high yield markets. But with forecasts of a rebound in the US dollar and inflation pressures growing, can the party last? Paul Kilby reports.
The credit crunch emanating from its continental neighbour to the north is sucking the life out of the corporate bond market in Latin America. At the same time it has found itself a victim of its own success, as investors look to countries paying higher yields to compensate their credit risk. Paul Kilby reports.
Despite a strong start to the year the prospects for the Brazilian bond market aren’t as rosy as they seem, and there is a real risk momentum carried over from 2007 could falter, as Anthony Dovkants explains.
While LatAm bond issuance has ground to a halt, the region's loan market has proven surprisingly resilient. Relationships are pushing deals forward, but economics are increasingly a deciding factor for banks taking a more defensive posture. Capital is scarce but so far has been available for good names willing to pay the price, as Paul Kilby reveals.
As liquidity dries out, Brazilian equity listings have dwindled which could make room for companies in other countries. Though the South American giant remains the primary regional player for ECM, its numerous small and mid-cap company listings are now but a memory of more exuberant times. Christopher Langner reports.
Like an oak tree planted in a terracotta pot, Latin America’s growth is being stunted by second-rate infrastructure. From the generators powering the factories to the roads transporting the goods they produce, Latin American governments realise stellar economic performance requires world class infrastructure, and many are turning to the market to ensure they deliver it, as Solomon Teague reports.
As carbon credit systems evolve and environmental awareness grows around the world, Latin America is in the forefront of what could become a significant market in the future. For now, however, it remains, essentially, just an idea. Environmental finance has been limited to a few big renewable energy producers tapping equity and debt markets. Christopher Langner reports
As volatility creeps up and investors become averse to real-estate-related issuance, homebuilding could lose momentum. Office construction, though, will probably remain healthy as cash remains king and private-equity firms step in, as Christopher Langer reports.
Brazil’s regulator, Comissao de Valores Mobiliarios, has overseen significant reform in its financial supervision regime, reflecting the advances made in the underlying markets. But it has plenty more to do, as Anthony Dovkants reports.
Banco Bradesco, long described by its rivals as a sleeping giant, is asleep no more. The investment bank is providing quite an upset for the competition after breaking into IPO and M&A markets in 2007 for the first time, following years of success concentrated in the debt capital markets. Anthony Dovkants found out more.