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: Market round-up

cardtrick.gif

Banks miffed at Deutsche's fees

Fees in Latin American debt capital markets have been coming down for years, and Deutsche Bank usually gets blamed, fairly or not, more than any other house. Last month it justified its reputation for lowballing with an alleged bid of just one basis point to lead manage a $300 million 10-year El Salvador deal. Competitors were miffed, to say the least, but Deutsche won the mandate.

But then El Salvador decided to issue a 30-year note instead. The bond came to market, was upsized to $375 million, and Deutsche got its fee – of 23bp. The 1bp bid was just on a 10-year deal: 30-year bonds cost 23 times more, it would seem.

Suddenly, Deutsche's fees went up from an initial expected level of $30,000 to a final amount of $862,500 – something much more respectable. Deutsche's competitors, of course, remained miffed.

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