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.

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

Latin America: Ten months good, two months bad...

...and what of 1998? Most of 1997 was a borrower's market in Latin America but the October market upheavals took the shine off bonds. Structured deals fared least badly and may prove the best way upwards in the new year. Michael Marray reports.

Endesa powers Chile into new century


Latin American borrowers who took advantage of the tight spreads and long tenors available during most of 1997 have cause for satisfaction. In the wake of fourth-quarter bond-market volatility, doubts have been raised about their level of access to international capital markets in the next year.

Before the Asian-induced October upheavals, it had been a year of steadily tightening spreads and lengthening tenors, with most deals heavily oversubscribed in spite of a record supply coming onto the market. Landmarks included Chilean utility Endesa's century bond, the first from a Latin company. However issuance all but dried up in November, and in secondary-market trading spreads on Latin bonds have widened out by between 200 and 300 basis points on many issues.

Not surprisingly, money managers have been adopting a wait-and-see attitude, preferring to engage in a little secondary-market trading in order to tidy up their portfolios ready for year assessment, rather than allocate any new money to emerging-market bonds. And borrowers have also been reluctant to risk launching deals into such a volatile market, looking to get Christmas out of the way and reassess the situation in the new year.


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.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

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

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, 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

LOGIN NOW

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