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  • Latin America’s best companies, like its capital markets, are beginning to find their bite. Boldness is the buzzword in a stable environment of 5% regional economic growth. For a growing club, foreign markets are the targets for home-grown Latin success stories. Leticia Lozano reports.
  • “Normally, the willingness of the monolines to go long-term means that they are cheaper for long-term funding. But the banks have been pushing the envelope on tenors and prices so this is simply not the case any more”
  • M&A, privatizations and the emergence of a new group of investors have helped boost interest and liquidity in the Portuguese equity market. This is tempting some companies to raise capital on the stock exchange. However, some of the biggest potential deals from the government could go elsewhere. Peter Koh reports from Lisbon.
  • As Latin America’s local markets develop strongly, banks are still figuring how best to cover them. Should they buy a target, grow organically or even consider a local tie-up? And which markets should they be present in? Sudip Roy reports.
  • One of the main reasons why investment banks are focusing more of their efforts on alternative areas, such as principal finance, structured finance and real estate finance, is because these are high-margin products. One of the big trends over the past three years has been the diminishing value of traditional debt capital markets business, especially sovereign deals, even as investment banking services to the region become more lucrative.
  • Portugal’s investment banks are holding their own, thanks in part to increased international cooperation between prominent local brokerages across Europe.
  • Row with Russia leaves large hole in the country’s current account.
  • Posit Now is the latest newcomer to European equities trading venues.
  • Aeon Credit Service, a credit card issuer, became the first Japanese company to tap into the growing market for Shariah-compliant debt when it began issuing under an agreement signed with joint lead arrangers, managers and bookrunners Aseambankers Malaysia, Bank of Tokyo-Mitsubishi UFJ and CIMB Investment Bank.
  • Many participants in the foreign exchange market were shocked by the sudden departure of nascent trading platform FXMarketSpace’s chief operating officer, Bryan Hunter, on February 12. His exit came just days after he had helped present details of FXMarketSpace to the European Central Bank in Frankfurt with his long-time colleague Rick Sears.
  • Monolines do not take on risk, they sell protection. Investors that buy wrapped bonds are not buying a triple-A bond, they are buying a financial guarantee. Fortunately, the default history of the industry means that investors do not have to dwell on the implications of this very often. But the protracted saga of Eurotunnel’s debt restructuring (which was finally resolved in January this year) is a salutary lesson for any investor as to what a monoline wrap actually means.
  • An increasing number of funds of hedge funds are issuing collateralized fund obligations. There have been 20 such transactions, 10 of which were launched in 2006. "We expect the number of CFO transactions in 2007 to surpass that of 2006," says Ken Margolis, co-head of global CDOs at Merrill Lynch.