The US Federal Reserve's aggressive easing of US interest
rates this year has greatly improved the reception of Latin
American issuers in international bond markets.
Investors had snapped up more than $6.2 billion of Latin debt
issuance by late February, and were eagerly awaiting more.
If anything, a slowdown in US growth may even be a blessing in
disguise, given the nature of the most recent near-crisis in Latin
America. Lower interest rates and a weaker dollar should give a
much-needed boost to Argentina, whose economic stagnation continues
to be the single-biggest threat to the region, even after a $40
billion rescue package.
"You will see another solid year simply because fundamentals are
strong and remain on an improving trend," says Mohammed El-Erian,
head of emerging market investment for Pimco, one of the biggest
dedicated and crossover global portfolio investors in Latin
America. "If the region has to cope with...
