LATAM WRAP-Bankers prepping for spike in bond issuance
By Paul Kilby
NEW YORK, Sept 18 (IFR) - LatAm credit markets were inching wider in light trading on Friday, as bankers braced for a revival in issuance next week after the Fed stalled a lift-off in rates.
The anticlimactic conclusion to the FOMC meeting on Thursday left somewhat deflated traders hoping that a reactivated primary market will invigorate secondary volumes.
"A lot of people are fed up with the Fed," said a New York-based trader, explaining the drop in volumes.
"Its decision was a buzz-kill, and nothing is moving today. New issues are what this market needs."
Bankers are certainly spying at least a short-term window for issuance - before the markets once again start speculating about the timing for US monetary tightening.
"It is a very clear window to issue into, but it feels like it will be temporary," one syndicate banker told IFR.
"Uncertainty and volatility could return in two weeks, with the release of the next payroll numbers."
Meanwhile borrowers are already lining up to pull the trigger next week. Continuación...