With the financing needs of the US and European governments, corporates and banks estimated at $4.5 trillion, emerging markets borrowers will feel a squeeze in 2009. Only the best-quality sovereigns and blue-chip corporates are likely to get away on the public markets.
Three Latin sovereigns have issued recently – Mexico, Brazil and Colombia. On December 18, Mexico priced a $2 billion 10-year bond at 390 basis points over US treasuries, via Goldman Sachs and Morgan Stanley. On January 6, Colombia and Brazil both priced $1 billion deals at 503bp and 370bp over treasuries respectively. Morgan Stanley and Barclays Capital priced Colombia’s...
