Saturday , June 25 2022

The increase in rates generate fever & # 39; link in Chile



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S & # 39; now in 2018, the Chilean corporations made 60 issue & # 39; bonds totaling & # 39; $ 3.3 billion, an increase of & # 39; 19% compared to last year.

Chilean companies are working full time to issue new debt before both the Chilean Central Bank and the US Federal Reserve meeting expected increases in rates in the last month of the year.

Possible new issues out sealing of & # 39; "a good year" for the Chilean market placements. S & # 39; now in 2018, the Chilean corporations made 60 issue & # 39; bonds totaling & # 39; $ 3.3 billion, an increase of & # 39; 19% compared to $ 2.8 billion placed in 2017 by & # 39; 51 operation, according to data compiled. of Stock Exchange & # 39; Santiago.

"This year there were more desirous because the issuers are trying to borrow b & # 39; lower rates", said Joaquin Aguirre, manager & # 39; strategy & # 39; Tanner, adding that 2017 was a year marked by "economic uncertainty and strong policies managed to some extent the great dynamism" market.

Latam Airlines, Parque ARAUCO and Entel are among the companies to issue bonds. According to data compiled by Bloomberg, the Chilean corporations requested authorization to acquire up to USD 6 billion in the coming months in the debt market.

Until now, the majority of the issues were in & # 39; Unidades de Fomento, measure & # 39; Chile accounting indexed for inflation. S & # 39; now in the last three months of the year were nine & # 39; & # 39 placements; corporate bonds totaling & # 39; $ 699 billion, almost double the amount issued in the same period in 2017 the same number of & # 39; operations, according to data from the Commerce Stock Exchange & # 39; Santiago.

The Central Bank & # 39; Chile announced in & # 39; September to begin withdrawing monetary stimulus because inflation is below target and the dynamism in the economy. The issuer fulfilled its promise by increasing the rate of & # 39; & # 39 in his reference, in October to 2.75%. However, the market is divided on whether the board will keep or increase its rate at the meeting & # 39; December 4.

All of the interest rate swap contracts show that the market is committed to the Central Bank will apply at least three additional increases by 25 basis points to 3.5%. In turn, the chairman of the Fed, Jerome Powell, yesterday urged the expectations about a possible break the cycle of & # 39; its monetary adjustment in 2019 after rising 75 basis points this year. The new issuing body continues to increase at its meeting of 19 & # 39; December.

For rates remain low, investors still buy everything that comes on the market. "Investors continue to look good earnings, and we saw an interesting and wide-ranging level placements within the historic", says the actor of Nevasa asset management, Jorge García.

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