NEW YORK, Jan 18 (IFR) - Four Latin American nations jumped into the US bond market on Wednesday, offering new debt for sale as the clock counts down to this week’s inauguration of Donald Trump as US president.
Just a day after Trump’s comments sent the US greenback into retreat, underscoring fears of increased volatility ahead, Argentina, Chile, Colombia and the Dominican Republic announced new bond deals.
Some of the president-elect’s rhetoric has set off jitters across the region, and some market participants noted that this was the last chance to act before Trump takes power on Friday.
“There is not a lot of clarity after Friday and the rates environment is constructive for dollar trades, especially sovereigns,” one banker told IFR.
Trump on Tuesday said he believed the US dollar was “too strong”, a comment that reversed some of the gains the greenback had made since his November election victory.
Argentina, Colombia and the Dominican Republic are offering new US dollar bonds, while Chile announced a Euroclearable peso-denominated trade.
The state-owned company that manages the metro system in the Chilean capital of Santiago, Empresa de Transporte de Pasajeros Metro SA, is also out with a new bond deal.
“There is a lot of downside to this market,” said a second banker. “So if you are smart, you want to get ahead of the curve rather than gang around. That is really the driver.”
The largest issue is likely to come from Argentina, which announced five and 10-year tranches for its first international bond sale of the year, expected to price as soon as Thursday.
The other three sovereigns are expected to price their deals later on Wednesday.
Colombia is offering a new 10-year and a tap of an outstanding 30-year deal, while the Dominican Republic is selling a 10-year.
Chile meanwhile is offering a local currency tap of a local instrument that priced last year and will be sold in a Euroclearable format to foreign investors, a source told IFR. (Reporting by the IFR team; Writing by Marc Carnegie; Editing by Natalie Harrison)