THE LATIN new issue market this week began to recover from its recent bout of indigestion as Argentina cable company Multicanal took advantage of the boom in US high yield debt to launch the first 20 year issue for an Argentine corporate this year. It will be followed today (Friday) by a $150m five year FRN from Nafinsa, the Mexican development bank. Multicanal succeeded in sidestepping the recent trough in emerging market bonds - which was caused by the deluge of sovereign dollar issues - by targeting its $150m 10.5% Euro/144A bonds at US high yield investors, most of whom are still clamouring for deals despite having already absorbed $50bn of new bonds this year.
April 17, 1998