January 01 2010
COVER STORY: High Yield Returns
LatAm high yield has rekindled much faster than anticipated. But as cash rich investors scramble for yield and diligence slips by the wayside, the specter of another bubble looms.
by Ben Miller
Single B credit, cov-lite loans, perpetual bonds, Argentine and Venezuelan exposure, 15% yields, debut borrowers raising twice their annual revenue via deals due in 2014. For some market veterans, the LatAm corporate credit market smells like pre-crisis 2007 all over again. For others, it is markedly different, more stable, and further indication that the sector is growing up.
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