This document, prepared by the Economic Commission for Latin America and the Caribbean (ECLAC) Washington Office, presents and analyzes the most recent developments (first quarter of 2017) concerning capital flows to Latin America and the Caribbean.
The main highlights are:
- 2017 started with the highest monthly issuance on record for Latin America and the Caribbean (LAC)’s cross-border bond market, with total issuance reaching US$ 24.2 billion in January. Petrobras led the way, issuing a US$ 4 billion dual-tranche bond on January 9, encouraging other issuers to come to the market.
- Although the pace of issuance slowed down in February and March, the total amount of debt issued by LAC borrowers in the first quarter of 2017 reached US$ 45.4 billion, an increase of 53% from 2016. This was the second highest quarterly amount ever issued in the region.1
- High-yield issuers, including sovereign and corporate, accounted for 61% of the total issuance in the first quarter. High-yield corporate issuers accounted for a quarter of the total.
- Issuance by banks and corporates in the first quarter of 2017 was 151% higher than in the first quarter of 2016 and 111% higher than in the first quarter of 2015. Issuance by quasi-sovereign corporates increased at a slower pace, and was only 16% higher than in the first quarter of 2016.