Developing nations led by South America and eastern Europe are due to offer about $48 billion more in bonds this year, with investors likely to snap them up after a drop in debt sales in May, said ING Groep NV.
Argentina’s most populous province is preparing a return to international bond markets to benefit from the lowest borrowing costs in two years.
Mexico sold $1 billion of bonds due in 100 years in the longest-maturity debt issued by a Latin American country.
Brazil has canceled the sale of its longest fixed-rate local bonds three times in the past month after Europe’s debt crisis eroded demand for less-traded assets.
Mexican corporate debt is lagging behind stocks by the most in eight months as investors bet a rebound in U.S. economic growth will fuel bigger gains in the equity market.
Options traders are showing more confidence in the Brazilian real than any other major currency as Latin America’s biggest economy grows at the fastest pace in 15 years.
Brazil’s barriers to international bond investors are exacting a growing cost from the Treasury.
"In an environment such as we had in the past week, you would expect equities would outperform."
- David Spegel on Jul 05, 2011