Capital Flows to Latin America and the Caribbean in five charts: first four months of 2024

1. Latin American and Caribbean (LAC) issuers placed US$ 53 billion of bonds in international markets in the first four months of 2024. This total was 61.5% higher than in the same period in 2023. Although LAC issuances remained relatively robust in February, they slowed in March, but January strength was enough to guarantee a spot for the first quarter of 2024 in the region’s top five quarterly issuance totals (figure 1).

2. Corporate bond issuances represented 58% of the total, following two consecutive years in which sovereign issuances surpassed the 50% mark. Private bank and non-bank debt issuances showed the largest increase relative to the same period in 2023 (figure 2).

3. The region issued US$ 13 billion in international green, social, sustainability and sustainability-linked (GSSS) bonds, up 90% from the same period in 2023. This total represented a 24% share of the region’s total international bond issuance, up from 20% in the same period in 2023, but down from the record 35% annual share in 2023 (figure 3).

4. Credit rating actions in the region over the first four months of 2024 were a net positive. Overall, 12 actions took place, with a balance of 2 more positive credit rating actions than negative (figure 4).

5. Borrowing costs for LAC issuers as measured by the JPMorgan EMBIG Index tightened by 41 basis points in the first quarter of 2024. They widened in April, however, after a higher-than-expected March U.S. CPI report was followed by a jump in U.S. Treasury yields. LAC bond spreads stood at 381 basis points at the end of April 2024, a tightening of only 2 basis points for the first four months of the year (figure 5).

For a complete and detailed analysis see the PDF attachment with the full document.

https://www.cepal.org/en/publications/80437-capital-flows-latin-america-and-caribbean-first-four-months-2024