Morning Commentary: Latin America primary quiet ahead of hoped for reset in September

By Rebecca Melvin

New York, Aug. 24 – Latin America’s primary market continues to be quiet with Brazil, Argentina and Mexico on the sidelines for the time being as market players watch for a key issuer to step up to show that there is a viable market, a New York-based market source said on Friday.

All regions within Latin America are looking pretty quiet,” the source said, noting that the market hasn’t seen a deal since the Dominican Republic priced $1.3 billion of 10-year notes at a 6% yield in early July.

Several deals had been on the new-issue calendar when currency troubles struck emerging markets in May, and after that only a handful of issuers were able to price a deal.

That being said, September is the second most popular month of the year to price a deal after January, so there may be some things in the works. The issuers to reopen the market will likely be away from those that are sidelined and could include countries including Ecuador or Paraguay.

Meanwhile, the Central & Eastern Europe, Middle East and Africa has also faced a quieter than normal summer lull, but with Poland’s mBank SA having announced a roadshow for a planned offering of notes next week, and Gulf Cooperation Council countries looking at the market, there was an expectation that the CEE/MEA region might reopen next week after the U.K. bank holiday on Monday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.