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Venezuela’s president continues to be a big fan of Argentine debt. Last month his government bought $239 million in 2012 dollar-denominated Boden bonds to take its investment in Argentine debt to more than $2.5 billion over the past two years. Argentina has relied heavily on Venezuela to help fund its financing needs and turned to its favourite creditor again. Recently Argentina has sold its debt through open sales but, following a spike in emerging market bond yields in mid-May, was unwilling to pay the higher rates. For Chávez, the purchases help boost his image as the strong man of Latin America.

The listed infrastructure fund, which is common in Australia, is gaining traction in Asia, with two new structures hitting the market in recent weeks.

The International Finance Corporation is only a small part of the World Bank organization, with a modest annual financing requirement. But it does pioneering work in developing local bond markets and its own benchmark dollar deals are of high quality.

“It’s so bloody liquid, it’s not even funny.”

Andy Abrahams, you’re rubbish...

Overvalued IPOs give cause for concern. Some bankers are becoming wary of damaging their reputation with rushed or over-valued Russian IPOs. Two banks dropped out of a deal last month and some analysts urge that caution be exercised in further IPOs.

Saudi petrochemicals company Sabic will issue domestic sukuk bonds with a total value of at least SR1 billion ($267 million), according to the company’s financial vice-president, Mutlaq al-Morished. The bond should be finalized this month or next, with huge demand expected from the paper-hungry local market.

Despite its size and maturity, the covered bond market is fast changing. New countries, new asset classes and new issuers vie for investors. But does the conflict between regulators’ desire for quality and consistency clash with investors’ needs for yield and diversification?

Maverick leader opens arms to international and national investors.

Investment banks are thinking of setting up their own alternatives.

The advent of whole-business securitization and the creation of a liquid market in project-related debt has opened investors’ eyes to the rewards available in infrastructure. Governments’ desire for off-balance-sheet funding has also boosted the supply of suitable investments. But what makes infrastructure different? How do you buy it, sell it and manage it?

UBS has bought Banco Pactual, one of Brazil’s leading financial services firms. The Swiss bank will pay $1 billion upfront and as much as a further $1.6 billion in five years, subject to performance conditions. In addition, UBS will establish a retention pool of up to $500 million in UBS shares for Pactual and UBS employees payable beginning on the fifth anniversary of closing. Pactual has a highly successful proprietary trading desk, a strong franchise in equity capital markets and a sizeable asset management business. Earlier this year it broke off negotiations over a possible joint venture with Goldman Sachs.