The latest tax regularization program proposed initially by the government of Brazil had merits, but its subsequent disfigurement by Congress – turning it into a kind of “default forgiveness” – is going to aggravate fiscal challenges rather than help solve them.
Mexico’s economy continued to grow in Q2 – Brazil to freeze spending– Petrobras boss arrested on corruption charges – IMF upgrades Argentina’s growth forecast – YPF tapped the international markets with a US$750mn bond – Banco de Bogota issued unsecured notes worth US$600mn – Graña y Montero signed a syndicated loan – US imposed sanctions on Maduro – Banco General issued a 10-year bond – Dominican Republic gets upgrade
Brazil's fiscal crisis is becoming increasingly pronounced in the deterioration of public services and, if nothing is done, the budget deficit target of BRL139bn this year will not be met.
Brazil offers a good example which illustrates the difference between signal and noise in investing. A complete mess from a journalistic perspective, Brazil has been one of the best investments in global fixed income markets and continues to offer an attractive investment proposition. We examine why countries with so much bad news can be such excellent investments.
CAF approves US$592mn credit facility to Latam nations - Grupo México to get US$1.55bn loan from BBVA and Credit Suisse - A major new oil field discovered in Mexico – Ex-Brazil leader Lula convicted - Brazil's Senate approves labour reform bill - The province of Buenos Aires taps European markets with EUR500mn bond – PDVSA seeks to renegotiate debt
Global debt reaches US$21tn – Mexico’s Central Bank completes annual hiking cycle – Brazil’s Temer indicted with corruption charges – Banco Mercantil del Norte places US$900mn – Argentina’s Cordoba province taps international markets with US$450mn bond – Colombia Movil closes US$300mn syndicated loan – Ecuador downgraded by S&P from ‘B’ to ‘B-‘ – Discounted Venezuela bonds now trading on Wall Street
The Brazilian National Development Bank (BNDES) made its first foray into the capital markets since 2014 a huge success when it priced the country’s largest green bond flat to its secondary curve, tapping into new liquidity pools in Europe and extending the tenor of its existing debt.
In the midst of a political crisis that is threatening the mandate of Michel Temer, a president with single-digit approval ratings, the silence of the streets seems strange to many analysts and critics of a supposedly passive society.
Brazil beef giant tapped Minerva took advantage of favourable conditions in emerging markets to sell a US$1bn bond due 2026, which priced inside the company’s yield curve at 6.625%.
In the Summer of 2016, automotive wheel producer Iochpe Maxion led by example to become one of the few Brazilian corporates to tap the dollar denominated syndicated loan market with a US$275mn dual-tranche term loan facility that was 43% oversubscribed.
- Brazil: The Central Bank Got It Right
- Brazil: Where Fiscal and Monetary Priorities Need Alignment
- In Brazil, The Real Estate Sector is Under Price Pressure – From Banks
- Latest Twist in Corruption Saga Threatens to Undermine Brazil's Reform Agenda
- CASE STUDY: Petrobras Reopens Latin American Credit Markets with US$4bn Trade