HOPES FOR a strong beginning to the new year in the US dollar market for emerging market issuers were deflated this week when Brazil postponed plans for a $1bn 20 year global bond. The republic was planning to issue the bond this week via Goldman Sachs and Chase. But wildly gyrating US equity and Treasury bond prices and the prospect of large emerging market supply sent emerging market spreads gapping out by more than 60bp. The JP Morgan Emerging Market Bond Index Plus (EMBI+) went from 782bp on Monday to 844bp by midday yesterday (Thursday).
January 07, 2000
