LatAm bond issuance expected to pick up after Memorial Day

jueves 21 de mayo de 2015 17:24 GYT

By Davide Scigliuzzo

NEW YORK, May 21 (IFR) - With a few Brazilian issuers set to tip their toes back into the Latam debt markets and US rate hike worries receding, bankers expect issuance volumes to pick up after Memorial Day.

In recent weeks, expectations of a Brazilian boost to issuance volumes have increased with a number of companies from the country lining up to raise debt.

A new issue from the Brazilian sovereign, which bankers have been longing for since April, is still seen by most as the ideal catalyst for a full reopening of the country's market abroad.

Yet after successful issues from Votorantim Cimentos, Itau Unibanco and JBS (through its US subsidiary), some blue-chip names could be tempted to pull the trigger on new bond deals and prompt others to follow.

"There are quite a few names that will need or are already looking to do some financing, but it is just a matter of what price and when," said the banker. "Before we see a wave of Brazilian issuers, we still need to see a couple of big guys out of the gates."

Bankers are expecting a rise in issuance activity amid growing conviction after the release of the FOMC minutes that interest rates may not be hiked at least in June.

"Now that the Fed is signaling that rates are going to be lower for a little bit longer people are adding (positions) in the secondary and feeling a bit more comfortable," said a syndicate banker in New York.

"Issuers should be taking advantage of the low rates."   Continuación...