Latin America

Argentina’s century bond: much ado about nothing


Argentina’s recently issued century bond deal was unexpected in terms of timing and maturity. Century bonds in Emerging Markets (EM) are rare (we think the table below is pretty exhaustive) and they grab the headlines, especially when issued by a credit that has defaulted many (many) times, like Argentina. Are… Read More »

Latin America: The winners and losers of “Trumponomics”


Political changes in the US have caused uncertainty over the trade policies that could be implemented and the region’s vulnerability to tighter financial conditions. Since Donald Trump’s victory, the currencies of many emerging countries have fallen against the dollar. Mexico’s currency was the most greatly affected in the world, with… Read More »

Brazil: the monetary lever should continue to support activity


Real activity indicators remained mixed, however. In the fourth quarter, economic activity shrank by another 3.4% on an annualised basis With rising commodity prices, Brazil’s terms of trade have improved considerably (chart 1), resulting in a recovery in confidence indices for both households and businesses. Real activity indicators remained mixed,… Read More »

Situation in Brazil – what are the key questions for investors?

Sailesh Lad -

While politics was always likely to be noisy, the risk that social reforms could be substantially delayed, has likely not been priced into the bond market. Silencing corruptionBrazil’s already-unpopular President Temer faces the rising risk of impeachment. This comes after a leading newspaper revealed he had condoned paying ‘hush’ money… Read More »