LatAm primary bond markets in busiest week of 2016

miércoles 8 de junio de 2016 16:26 GYT

By Paul Kilby

NEW YORK, June 8 (IFR) - Latin America's primary bond markets are on course for their busiest week of the year, with borrowers bringing a slew of new deals amid an upbeat tone for emerging markets assets.

Five trades for almost US$3bn equivalent joined the fray on Wednesday, making for a total of nine deals out this week - easily the most in one week thus far in 2016.

Mexican cement company Cemex jumped in with a EUR400m eight-year bond, while dollar trades followed from Colombian oil credit Ecopetrol, the Province of Buenos Aires, REIT Fibra Uno and Argentina's Cablevision.

Pulp company Eldorado and conglomerate Cosan are also eyeing dollar financing this week, while Brazilian iron ore miner Vale priced a trade on Tuesday.

The Mexican sovereign is also expected to price a JPY60bn dual-tranche bond on Thursday.

"It is a positive backdrop for EM, particularly Latin America," said Kathleen Gaffney, a portfolio manager for Eaton Vance's Bond Fund.

"US Treasury yields are moving lower, the dollar is weaker and EM currencies are stronger. That makes it an ideal time to issue."

Higher oil prices and a dovish tone from the Federal Reserve after exceptionally weak payroll data have also helped buoy sentiment toward a region heavily reliant on commodity exports.   Continuación...