Recent Trends in Overseas Bond Issuances by Latin American Companies

This paper analyzes the recent trend in bond issuance of Latin America companies in the international financial market. The data shows an increase in the issuances and the term of the bonds indicating the greater openness of Latin America companies in the international markets, and the better funding conditions. The analysis of dynamic conditional correlations between bond yields and a set of global indexes shows that recent episodes of financial volatility have not changed the historical correlations in these markets. An analysis of the issuers' financial ratios (liquidity, profitability and solvency) indicates that so far these indicators have not deteriorated due to the increased indebtedness in foreign currency. This suggest that the risk of increased access to international markets is bounded. (Audio: Department of Economic Publications)