Flash Report - Fixed Income / Global

LatAm corporate issues: The flurry continues

Latin American corporate issuers have been taking advantage of what seems to be limitless appetite for new debt (as have sovereign issuers). The year started with a bang with high-grade corporate issues from Chile, and, seeing the extremely strong demand in the markets, more issuers followed from other countries and at various ratings.


Most Viewed See all latest
Disclosures

This publication is being distributed by Tellimer solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not cons...

Full Tellimer disclaimers
Equity Analysis / Argentina

Argentina banks: An opportunity if the macro agenda improves

  • Domestic stocks are still following an uncertain path
  • Companies with high percentage of dollar-denominated revenues and low debt levels would act as hedge in current scenario
  • Global markets’ performance and sovereign debt restructuring negotiation would continue to be the main short-term driver
Juan José Guma @
Capital Markets Argentina
10 June 2020

Despite the recovery seen in recent weeks, domestic stocks are still following an uncertain path, influenced by the developed markets’ volatile performance and the potential disclosure of a new sovereign debt restructuring offer, to avoid a “hard” default. Companies with a high percentage of dollar denominated revenues, lower operating exposure to domestic market and low debt levels would act as a hedge in the current scenario. Furthermore, global markets’ performance and the sovereign debt restructuring negotiation would continue to be the main short-term driver for domestic stocks. 

We consider that banks are currently not attractive due to the Central Bank’s recent changes in regulation, setting the domestic banks’ lending and borrowing rates, and its ROE below inflation which would not change in the medium term, although that in a context of potential economic recovery, banks usually outperform the index.


 
Read more

3 articles remaining this month. It's free and easy to sign up.