Cover Story – Transition Finance: The Big Cleanup

Capital is increasingly being allocated to help heavy polluters fund their costly decarbonization plans. ‘Transition finance’ may be the greatest economic opportunity ever in the race against climate change. At a plant outside Montevideo, Vantem pours and presses materials into concrete-like boards. The electrified process runs at nearly room temperature, consuming only a fraction of…

Catastrophe Insurance: Storm Chasers

With weather-related disasters on the rise as the earth warms, catastrophe bonds are gaining attention in Latin America and the Caribbean. Chile recently gained $630 million in financial protection from earthquakes and tsunamis through a catastrophe bond and swap deal. More want to follow suit. Weather-related disasters are on the rise globally as the climate…

Brazil Capital Markets: The Long Wait

After a prolonged drought of deals in Brazil’s capital markets, things are starting to look up. But financing costs are still too high for a rally. After a long, hot summer, temperatures have finally eased in Faria Lima, the financial district of São Paulo. This has brought some cheer to companies and investment bankers after…

Mexico Investment: Business As Usual

Mexico’s government has seized railway assets, nationalized the lithium industry, and taken private land. But with a presidential election looming, investors are not too phased. The country is just too well located for a nearshoring boom to look for other hubs. No expropriations, no confiscations, no nationalizations. That was a campaign promise that Andrés Manuel…

Venezuela Sovereign Debt: A Hefty Wager

Venezuelan bonds may rally from dirt-cheap levels, but that hinges on the US government lifting trade sanctions. For distressed debt traders, that may happen sooner than later. Venezuela is the biggest asymmetrical bet in sovereign debt markets. Since Nicolás Maduro assumed the presidency in 2013, Venezuela’s economy has shrunk 75%, the largest recorded drop in…

Parting Shot: Managing Fiscal Risk

Former Brazilian finance minister Maílson da Nóbrega co-wrote the recent documentary O dinheiro é nosso (The Money is Ours) which explores the fallout of botched public financial management. In an interview with LatinFinance, he discusses fiscal and social issues, inflation and other challenges in Brazil and Latin America. LatinFinance: How serious is Brazil’s fiscal predicament? Maílson da Nóbrega: Brazil…

MARKET TALK – Q3 2023 OUTLOOK: BONDS

After a sluggish first half, the primary bond market is showing signs of recovery as the end of the financial tightening cycle appears to be nearing, analysts say. Primary bond issuance in Latin America and the Caribbean is poised to gain in the second half of 2023 after a slow first half, but the pace…

MARKET TALK – Q3 2023 OUTLOOK: EQUITY

Equity issuance is poised for a rally after a long dry spell, led by Brazil and Mexico. But first developed markets must stabilize, and that will depend on a decline in inflation and interest rates. After a sluggish start this year, primary equity issuance in Latin America is poised to grow once a decline in…

MARKET TALK – Q3 2023 OUTLOOK: LOANS

Despite a sharp drop in activity in the first half of the year, the region’s loan market is expected to rebound in the months ahead. Lending activity in Latin America and the Caribbean is expected to pick up in the second half of this year as more companies seek cheaper fundraising alternatives than the bond…

MARKET TALK – Q3 2023 OUTLOOK: M&A

After a slump in the first half of this year, M&A activity is expected to recover in the second half as improving company valuations boost sales prices. Most of the deals will be in the commodities, energy and financial services sectors Mergers and acquisitions activity in Latin America and the Caribbean is on track to…