Mexico comforts investors by being the first sovereign to put collective action clauses in a global bond. Whether the move will advance debate over sovereign debt restructurings remains to be seen.
Category: 2003
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Cooking Up a New Solution
As Argentina gears up for negotiations with the bondholders it stiffed 18 months ago, other sovereign issuers and banks are experimenting with a new generation of bonds that could profoundly reshape the debt market for years to come.
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Standardize, Centralize, and Conquer
Jeff Henley is CFO of the world’s second-largest software company and has an evangelical belief in the message of US-style capitalism and his own company’s business philosophy. Latin America, he believes, could benefit form more of both.
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Doing Well on Others’ Misfortunes
Corporate investigations and countering corruption are Jules Kroll’s stock-in-trade. Latin America’s economic troubles have only boosted the business of rooting out crooked executives and politicians.
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The Costs of a Neo-Populist Experiment
One of the most remarkable features of Argentina’s debt debacle is the government’s attempt to shift the burden of adjustment away from the domestic economy, transferring wealth from creditors to debtors, and from future generations to current ones. Guillermo Mondino says the long-term consequences of such a strategy are serious and warns other countries to take heed.
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Empty Coffers, Hungry Creditors
Latin American companies burdened with debt are struggling to keep current on their loans and bonds. Not everyone is complaining. Workouts allow operationally sound companies to stay in business and keep investment bankers and securities lawyers busy.
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The Door is Open Again
The worst appears to be over for Latin American sovereign bond issuers that have successfully executed bond sales that would have been impossible a year ago.
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Equity Market Illusion
Latin America’s main stock markets have made an astonishing recovery this year. Unfortunately, this upturn does not hide a profound sickness the markets. True, the rally certainly looks impressive, even […]
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The Loan-Bond Tag Team
Syndicated lending has lost ground as a stand-alone business and is now part of a suite of international and local debt products offered by banks.
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Hidden Dangers, Proceed With Caution
The failure of international investors to thoroughly vet potential partners can have costly consequences. It is more important than ever that corporate acquisitions in Latin America include exacting pre-deal research and analysis.