Category: 2022 Q2

Dear Reader, When you invest in emerging markets, you accept the risk. It’s part of the attraction. The higher the risk, the higher the return on investment. And, of course, the higher the risk of losses. This begs the questions: when to get in and when to pull out? This year, there’s plenty to worry […]

Bond issuance took a dive in February on concerns that an expected rise in global interest rates will push up the cost of money. But activity should pick up despite the volatility. Latin American primary bond sales are poised to pick up in the second quarter of this year after a lackluster February when issuers […]

Latin American equity issuance likely will remain subdued this quarter as economic, political and geopolitical uncertainties keep a lid on demand and potential IPO prices. But deals may pick up later in the year – and even before Brazil’s October election – as the region gains favor as a safer haven in emerging markets. In […]

Brazil and Mexico will lead M&A activity in 2022, but dealmaking may be subdued as high inflation and political uncertainty reduce investors’ appetites for acquisitions and put off sellers.  Merger and acquisitions (M&A) activity started the year with less punch than in 2021, but it’s poised to pick up, potentially led by sale of Mexican […]

After stockpiling cash during the pandemic, Latin American banks are in a good position to lend. Borrowers, however, are skittish about how looming elections in Brazil and Colombia and a change in benchmark interest rates may affect their finances. Loan activity in Latin America is poised for moderate growth in the second quarter of this […]

ON THE EDGE After a boom in bond and equity issuance in early 2021, conditions have soured for issuers in Latin America – and they may get worse (or better).  It’s not always easy to predict when to raise money at the lowest price and best tenor, or as finance managers say, when the conditions […]

POINT OF NO RETURN After being heavily underweighted on political concerns, Latin America is once again on the radar for emerging market investors – at least for now  After Russia invaded Ukraine in late February, a surge in commodities prices and concerns of potential supply disruptions heightened fears of a world economic slowdown and political mayhem. […]

SUSTAINING THE BOOM Latin American issuers are not only responding to investor demand for socially responsible investments, but they’re also getting more innovative in structuring their securities to address more issues. When Interchile, an operator of power lines in Chile, made its debut in the cross-border market last year, it could have struggled to attract […]

Q&A: MAURICIO CLAVER-CARONE The Inter-American Development Bank (IDB) plans to put more money toward sustainability in Latin America and the Caribbean, including by helping to unleash vast and growing amounts of private-sector investment, IDB President Mauricio Claver-Carone says. Mauricio Claver-Carone had to hit the ball running when he was elected as president of the Inter-American […]