LATAM WRAP-CAF's euro deal injects life in primary markets

lunes 2 de noviembre de 2015 15:53 GYT

By Paul Kilby

NEW YORK, Nov 2 (IFR) - A more supportive backdrop for LatAm credits could bring out more borrowers this week after regional development bank CAF announced a five-year euro trade on Monday.

While bankers are not predicting a flood of issuance in coming weeks, some think a few roadshows could be announced this week.

"A Fed hike this year is not off the table, and that threatens to disrupt the stability, but perhaps guys are starting to realize that this is the last time they can get prefunding when the 10-year Treasury is in the low 2%," said a syndicate banker.

However, mixed economic data across the globe has left markets in two minds over the timing of Fed hikes and some bankers believe issuers would prefer to wait until next year.

"My impression is that people are happy to shut it down for the year," said a senior DCM banker.

Several Mexican names have been sitting in the pipeline for weeks despite a more supportive backdrop, including Mexican REIT Fibra Uno and white goods manufacturer Mabe.

"Fibra Uno's (third quarter) numbers were surprisingly positive, and it doesn't look like their spreads are going to tighten more over the next couple of weeks," said the syndicate banker.

"Perhaps they are waiting for a better window next year."   Continuación...