Recent Trends in Overseas Bond Issuances by Latin American Companies

This paper analyzes recent trends in bond issuance by private companies in Latin America in the international financial market. The data show an increase in both the volume of issuances and the maturity of the bonds, reflecting Latin American companies’ greater access to the international capital market and improved financing conditions. An analysis of dynamic conditional correlations between bond yields and a set of global indices indicates that recent episodes of financial volatility have not altered the historical correlations in these markets. A financial analysis of the liquidity, profitability, and solvency ratios of issuing companies shows that, so far, these indicators have shown only a slight deterioration as a result of increased foreign-currency debt. This suggests that the risk associated with growing access to international markets is limited.