LATAM WRAP-LatAm eyes pick-up but Greece woes weigh
By Davide Scigliuzzo
NEW YORK, July 2 (IFR) - LatAm bankers are expecting a pick-up in primary activity in July, but the standoff between Greece and its creditors is clouding views on how busy the market will be.
One syndicate official in New York said volumes this month could be between US$5bn and US$20bn, depending on whether some of the large borrowers in the region decide to tap the market.
"I know of a trade that could be around US$2.5bn next week," the banker told IFR, saying that some sovereigns may also be thinking about issuing over the coming weeks.
"If Brazil comes or Petrobras comes, it could be several billions."
Another syndicate official said that, with a rate hike from the Federal Reserve largely priced in for later this year, some issuers might not feel the need to issue this summer.
"Issuers are not wild about their spreads, which have drifted wider on the back of illiquidity, Greece and lower oil prices," the second banker said.
"The ones who can be selective feel like they might have a better window."
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