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The increase in rates generates a bond fever in Chile



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So far in 2018, Chile corporations have made 60 bonds for a total of $ 3.3 billion, a 19% increase compared to last year.

Companies from Chile work full time to issue a new debt before the Central Bank of Chile and the US Federal Reserve meet the increase in the expected rate during the last month of the year.

The potential new issues would continue to seal a "good year" for the Chile placements market. So far in 2018, Chile corporations have made 60 bonds for a total of $ 3.3 billion, a 19% increase compared to the $ 2.8 billion set in 2017 through 51 operations, according to data collected. from the Santiago Stock Exchange.

"This year there has been more appetite because publishers are giving up loans at low rates," said Joaquin Aguirre, Tanner's strategy manager, adding that 2017 is a year marked by "strong economic and political uncertainty give the best to some good dynamics" of the market.

Latam Airlines, Arauco Park and Entel would be among the companies to put bonds. According to data collected by Bloomberg, Chile corporations have requested permission to reach up to US $ 6 billion in the next few months in the debt market.

So far, most of the issues have been the Promotion Units, an accounting measure in Chile has been able to index to inflation. So far during the last quarter of the year there are nine corporate bonds for a total of $ 699 billion, almost doubling the amount distributed in the same period of 2017 in the same number of operations, according to data from & # 39; the Commercial Stock Exchange of Santiago.

The Central Bank of Chile announced in September that it would start to withdraw financial incentive due to inflation below the target and given the dynamics of the economy. The publisher fulfilled his promise by raising his benchmark rate in October to 2.75%. However, the market has to share whether the board will hold or increase the rate at its December meeting.

Interest rates exchange contracts show that the market bets that the Central Bank will operate at least three additional races from 25 points to 3.5%. As a result, Fed's chairman Jerome Powell, yesterday, expected expectations of a possible break in his financial adjustment round in 2019, having increased 75 basic points this year. The publishing body would go on to a new increase at its meeting on December 19.

With the rates still low, investors continue to buy everything that comes to the market. "Investors are still looking for good earnings, and we've seen interesting locations and spreads much more than historic", said Jasa García, Nevasa's Asset Management Assistant.

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