In early 2023, the disclosure of a major accounting scandal brought Brazil’s capital markets to its knees. A BRL20 billion (then $3.9 billion) hole found in the books of Americanas, a traditional retailer, caused banks to close their credit spigots, slammed the Ibovespa stock index and, for a couple of months, turned investors away from Brazilian securities.
Category: Magazine
Posted inMagazine
Market Talk: Bonds
Latin American primary bond sales are expected to remain robust in the second quarter of 2024 after the market saw a pickup in deals in the first two months, analysts say.
Posted inMagazine
Market Talk: Loans
Lending activity in Latin America is expected to pick up in the second quarter of 2024 after a sluggish start to the first quarter, led by corporate demand for funds for acquisitions, an analyst says.
Posted inMagazine
Market Talk: Equity
After two years without any major IPOs, a Mexican retail chain broke the ice in February. More are expected to follow suit as falling interest rates push investors back to the equity markets.
Posted inMagazine
Market Talk: M&A
After a slow year, M&A is recovering in Latin America as investors bet that the region’s economic growth, expanding middle class and falling interest rates will boost the probability of successful deals.
Posted inMagazine
Q2 – Skies Wide Open
Is this Latin America’s moment? There is a lot going for it, that’s for sure. There’s social peace and an abundance of natural resources, plenty of which are for the green transition, like copper and lithium. A surplus of oil for exporting is a promise in the short term, natural gas in the longer term. Opportunities also abound for nearshoring to supply North America.
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International expansion of Banreservas, support for the Dominican diaspora
The leading Dominican bank is committed to supporting the productive sectors, digital transformation, cybersecurity, and financial inclusion The performance and service vocation of Banco de Reservas de la República Dominicana […]
Posted in2024 Q1
Sustainability-linked bonds: On the up
It didn’t take long for sustainability-linked bonds to explode following their emergence in 2019, but a surge in adoption gave way to concerns over weak targets, toothless penalties and greenwashing — and as rates rose, issuance volumes collapsed. Yet as issuers redouble sustainability commitments, the market looks poised for a rebound.
Posted in2024 Q1
Brazil: Betting Big on Carbon
Brazil is creating what could be the first – and biggest – carbon credit market in Latin America. Progress, however, has been slow and the challenges large, from including the hesitant agribusiness sector to properly verifying carbon offsets in the Amazon rainforest.
Posted inMagazine
Market Talk: BONDS
A surge in optimism in primary bond markets has fueled expectations of a busy first quarter in cross-border markets. Meanwhile deals in local markets are also expected to pick up as interest rates come down sooner than in developed markets, analysts say.