High Yield Dominates LatAm DCM

High yield bond issuance out of LatAm and the Caribbean increased by 47% in the first seven months of 2007 to $24.2bn, compared to $16.5bn for the first seven months of 2006, according to Dealogic. By contrast, investment grade issuance fell by 16% to $10.2bn from $12.1bn for the same period last year. Corporate bond issuance jumped 20% in that period and accounts for two thirds of the overall volume, which posted a 14% year on year increase to $51.1bn raised through 311 deals compared to $44.7bn and 324 deals in the first seven months of 2006. The fastest growing sector in the region is oil and gas, Dealogic finds. The sector is the second most active, with an 11% increase in issuance this year compared to 2007, accounting for 19% of all bonds issued.