Latin American credits gain safe-haven status

In tight markets, some Latin issuers are doing blow-out deals that demand investor attention.

One of the more remarkable aspects of the crisis that has gripped the financial markets over the past few months is that some Latin American credits have become safe havens. At 4.68%, Brazil’s 10-year benchmark bond yield, for example, is trading well inside equivalent notes for Portugal and Greece and on a par with Spain. Don’t forget that this is an election year in Brazil, with all the uncertainty that political risk in the region brings.

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