LatAm hypothesis faces moment of truth

As US rate rises become a reality, Latin American markets face another home truth: have they actually become a standalone asset class, or is a sell-off inevitable?

Deal volumes from Latin American issuers in the international capital markets soared last year and the same conditions that broke records – resurgent supply and positive investor flows into the asset classes – also saw the markets sprint into the first quarter of 2018.

Last year’s $145 billion of debt issued in the international markets was a record from the region, while equity capital markets ($27.3 billion) and M&A ($176.9 billion) were the highest annual totals since 2013 and 2014 respectively, according to Dealogic.

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