Argentina’s attempts to repair its standing internationally show the nation wants to tap overseas bond markets for the first time since a $95 billion default in 2001, according to former central bank governor Mario Blejer.
Brazil’s soaring budget deficit is sparking a selloff in its two-week-old international bonds, pushing up the cost of insuring its debt by the most in the world and prompting Finance Minister Guido Mantega to explain that he doesn’t spend taxpayer money on caviar and shrimp meals.
Petroleos de Venezuela SA will sell $4.5 billion in bonds this week in the first issuance by a state entity since May 2012 as the government seeks to bolster shrinking reserves and curb the world’s fastest inflation.
Gramercy Funds Management LLC, the hedge fund that helped orchestrate Argentina’s defaulted-debt exchange in 2010, is seeking support from bondholders to help end a decade-long legal battle with the government.
Venezuelan President Hugo Chavez’s political agenda could delay a currency devaluation expected by investors to at least early next year as the government tries to consolidate power in regional elections in December.
Chilean interest-rate swap rates rose to the highest level in more than a year as traders increased bets that the central bank will raise borrowing costs tomorrow for the first time since September 2008
Argentine President Cristina Fernandez de Kirchner’s ruling coalition lost Buenos Aires province, the country’s largest, while keeping a majority in both houses of Congress in midterm elections yesterday.
Argentine bonds rallied, reducing the extra yield investors demand to hold the securities instead of U.S. Treasuries to the lowest level in almost a year, as the government negotiates a $3 billion loan from the World Bank.