| Headline: Small but sound sovereigns attract cash-rich investors Source: Euromoney Date: December 2001 Author: Felix Salmon It’s not all bad. The world of international finance works in mysterious ways, and right now it looks as though central America is actually a beneficiary of Argentina’s default and the US recession. The Dominican Republic started the ball rolling as early as September 20, with a deal originally slated for September 11. The $500 million five-year bond paid came at a premium of just 25bp over the expected price on September 11, largely because of the size and strength of the pre-tragedy order book. By the beginning of November, Guatemala and Panama had both issued bonds from scratch, and there was talk of a Barbados deal. Total bond issuance for the region will top $3 billion this year, up from $1.1 |