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LATEST ARTICLES
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With equity and now debt funding getting scarcer in public markets, Latin American corporates must think of other options. For longer-term investors, and for those with a strong appetite for risk, the region’s troubles are a rare opportunity.
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Tarpon takes control of Abril for R$1.3 billion; new regulation might limit numbers of higher students.
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Needs credibility before returning; wants to avoid punitive pricing.
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Brazil has all the ingredients for successful local markets, but it keeps failing to deliver.
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The troubles at Petrobras have hurt all of Brazil’s borrowers but bankers in the country think the worst is now over and that the bad news has been priced in. The proof will come when issuers return to the markets, but who wants to go first – and can the local markets produce the goods?
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Brazilian bank Bradesco opens its London office on February 9. A small delegation of senior bankers from the bank’s Brazilian headquarters will fly over to mark the occasion.
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The private banking industry in Latin America had a difficult 12 months as wealth creation slowed throughout the region. The picture for the year ahead looks brighter for some countries, but Brazil remains the dominant market and its prospects are still murky.
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Sovereign reopens market; Petrobras saga stymies Brazil.
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Rationing increasingly possible; Stagnant economy slowed consumption
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Corruption scandal stymies bond issues; Lack of supply may set stage for others
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Brazil has a long and painful struggle ahead to revive its economy. Denial and complacency will not help that process.
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Brazil’s banking industry exclaimed loudly that another four years of Dilma Rousseff would be a disaster for the country. Now that she has been re-elected, have the bankers changed their minds?
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Strong results across the sector; banking system ‘a source of strength’.
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Rising rates deter equity investors; Brazil no longer driving volumes.
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The decline of the Brazilian real to a nine-year low this week seemed to mark a nadir for a currency buffeted by economic and political concerns. Analysts say, though, that things could get worse before they get better.
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Vital reforms unlikely; next president will inherit inflation headache.
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Brazil’s business community wants ‘anyone but Dilma’ as its next president. But Marina Silva will not be able to deliver everything that business, or the country, needs
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Incensed by their failure to reform, Brics policymakers have established a flawed rival to the World Bank and IMF. Rhetoric aside, the west dismisses emerging-market dissent over the broken financial architecture at its peril.
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It has become normal in Brazil for private-sector banks to express frustration with the scale and cost of BNDES’ presence in financing corporate Brazil. However, given the power of the bank to engage with private-sector financial institutions (either through granting debt lines that are passed through the private banks, or from holding equity stakes in companies that the banks see as clients or potential clients), these criticisms are made off-the-record.
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Dilma Rousseff has told Brazil’s public banks to boost the country’s flagging consumption until the elections with double-digit loan growth. Weakening credit quality and capital ratios are worrying analysts.
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Private banking clients in Brazil face challenging times, bankers concede. The economy is under pressure and the country could yet suffer stagflation. Furthermore, an unpredictable presidential race leaves markets in limbo. However, bankers are confident their well-educated client base will not over-react, and instead maintain their long-term strategies
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Mexico’s energy reforms should kick-start growth in its lacklustre economy while Brazil appears to have no strategic planning in place.
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Election campaign delays rationing; ‘pray for rain’ say analysts.
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Asset allocation hangs on election result; closing the instrument is good news for private banks.
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The Brazilian real has been rising in recent weeks on hopes opposition candidate Marina Silva will beat president Dilma Rousseff in a run-off election in October. With the Brazilian economy faltering and the election outcome still on a knife edge, the real’s outlook – and the country’s macro framework, more generally – remains unclear.
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High relative rates draw investors; elections weigh on rally.
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Louis Dreyfus to repurchase 90% of deal; firm commitment IPOs under question.
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Short-term gains for some energy firms and industrials; longer-term energy strategy review needed.