Bankers hold out hope for renewed LatAm bond issuance

lunes 27 de junio de 2016 10:48 GYT

By Paul Kilby

NEW YORK, June 27 (IFR) - Bankers don't discount the possibility of primary activity in Latin America this week even as global markets tumbled on Monday following the UK's surprise vote to exit the European Union.

The knock-on impact from Thursday's referendum spilled over into the US markets on Monday with the S&P 500 slipping 1% at the open and a flight-to-safety bid pushing the yield on the 10-year Treasury to 1.469%.

The reaction in Latin America has been relatively muted however, with traders reporting light activity and even some buying at the margins despite oil extending losses.

"In the corporate space you have hardly seen any reaction to Brexit," said a London-based investor.

The new 2026s issued by Brazilian oil company Petrobras were about half a point lower at 99, while miner Vale's 2021s had also made a similar drop to 98.

"Things are wider but it is very quiet," said a New York-based trader. "So far we haven't seen any redemptions and even some buying."

The region's visible pipeline has been steadily growing following what has essentially been a two-week drought in new issuance.

Argentine confectionary company Arcor is wrapping up roadshows Tuesday, while the Province of Salta and Mexican real estate developer Grupo GICSA both finished investor meetings last week but held off ahead of the UK referendum on EU membership.   Continuación...