The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Investors pour into hot new Latam issue market

Primary issuance in Latin American DCM is enjoying unprecedented liquidity, supply and deal volumes. The region is leading the 2012 emerging market fixed-income resurgence, and the battle for power between issuers and investors is developing into a fascinating contest.

With all due respect, but if Digicel can print a seven-year issue then..." Jim Craige, partner at Stone Harbor Investment Partners in New York, which manages emerging market fixed-income funds, pauses momentarily. He continues: "Let’s just say that if I were an issuer I’d be out in the market all day long. I’d turn myself out to 2016 right now if I could. You could sell anything in this market."

Craige was speaking two days after the Caribbean telecom’s $250 million transaction on February 7 that priced at par to yield 7% (treasuries plus 503 basis points). On February 9 Turkey also pointed to heat in emerging markets bonds when it re-tapped its 2022s, selling without a new-issue concession. In the first six weeks of 2012 there was unprecedented deal flow and investor liquidity: $30 billion of cross-border debt was issued by Latin American credits, more than in the whole of 2008. Bankers were reporting a sellers’ market and a pipeline that was far from exhausted.

But later in the day on February 9, Brazilian sugar and ethanol company Grupo Farias and Dominican port company Caucedo abandoned deals in the dollar bond market. In the week to follow, Gol Linhas Areas failed to print a perpetual and the City of Buenos Aires pulled a dollar-denominated transaction.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree