Brazil

Standard & Poor’s has removed the immediate threat of a sovereign downgrade for Brazil after saying that the political landscape is “somewhat more settled” than it was in May.

Deutsche Bank has appointed a new head of Latin America debt capital markets after promoting from within, according to sources with knowledge of the move.

JSL, the Brazilian logistics company that has been able to improve its cash flow generation despite Brazil’s worst ever recession, raised $325m of bonds due 2024 on Wednesday on its international bond debut.

French lender Crédit Agricole has hired Italo Lombardi from Standard Chartered as its Latin America economist and strategist.

Meatpacker Minerva sold the first Brazilian cross-border bond since renewed corruption allegations against Brazilian president Michel Temer shook the market last month, tapping its 2026s for a further $350m.

Moody’s followed Standard & Poor’s in placing Brazil’s credit rating on negative outlook on Friday, but both agencies have reaffirmed Petrobras’ rating as analysts say they expect the state-owned oil company to gain ground on its sovereign parent.

LatAm bond market participants said contagion from the latest Brazilian corruption crisis had dissipated this week as new issuance returned to the region and spreads recovered within and outside Brazil.

S&P became the first ratings agency to react to the latest corruption scandal in Brazil on Monday, but some large investors already think the market has overreacted to the news.

Corruption accusations made overnight on Wednesday against Brazilian president Michel Temer threw EM bond markets into turmoil just as they had already suffered a torrid day on the back of a Donald Trump-provoked slump in global markets.

What, on Wednesday, seemed to be primary capital markets gung-ho for any deal imaginable by Thursday looked more like a market on the skids as concerns intensified over the endless controversies dogging US president Donald Trump’s administration.

Latin America bonds did not emerge unscathed from the carnage in broader markets on Wednesday as several weeks of strong appetite for EM bonds were interrupted by the biggest US stock sell-off in eight months.

Emerging markets bond bankers can think of nothing to derail the ongoing bull-run and while this might point to hubris, this week’s trades have given no indication of fatigue.