LatinFinance - September/October 2013 - 30

ahead, although bankers insisted at the
end of the summer that volatility had come
down to an acceptable level.
“Historically, we are still looking at very
attractive all-in yields,” says Katia Bouazza,
co-head of capital markets for the americas
at HSBc. “issuers who were on the sidelines that thought they had more time are
definitively jumping in to take advantage
of the relatively low rates. We will see a
busy second half, absent any major market
disruptions. the region is still growing.”
the market was boosted by the return
of a handful of issuers in august. although
these were mostly blue-chip companies,
bankers say space still remains for highyield issuers as well. “there is not genuine
risk aversion, but there is a strong preference for liquidity,” Bouazza says.
fees seem likely to remain stable, but in
a more volatile market, bankers say there
could be an adjustment ahead. this would
not be so much for the large sovereigns and
the large corporates, but for the second
tiers and the smaller and less liquid deals.
corporates will continue to see the loan
market as a strong alternative if there is a
bond market disruption due to US treasury
market volatility, Bouazza says.
the local market is contributing as well.
mexico and chile have seen local Dcm
activity in august and September. a $400
million sale from ecopetrol brought volume
to colombia in august, though it was the
market’s first deal since may.
“now that markets are coming back to
normality, activity is starting to pick up in

“You have had a transition from valuations in the region, ex-mexico, that were
more attractive in equity markets before
six to nine months ago,” he says. “then
you get owners of businesses getting more
accustomed to lower valuations, and there
is more of a willingness to look at strategic
options.
“Regional consolidation is a very key
trend in a number of sectors,” Rosen says.
“clients are looking for assets where they
can generate synergies. that is a strong
theme around latin america.”
DCM: Steady…so far
a market shutdown amid US treasury volatility in June and July raised the prospect
this year of less active debt capital markets
following record issuance in 2012. Yet so far,
volume remains roughly on par with last
year. issuers raised $103.1 billion through
September 6, compared to the $107.1 billion
in the corresponding period of 2012.
this is also reflected in the fees, which
remain stable from last year. Banks have
earned $402 million from Dcm deals this
year, compared to $421 million in the first
eight months of 2012 .
But whether or not issuance will top last
year’s record will depend on the market
openness over the remainder of the year.
this is principally down to the stability of
the US treasury market. talk of unwinding the monetary stimulus in the US was
what blew out treasury yields and spooked
issuers and investors alike. most observers
agree there will be a higher cost of funds

the bond market,” Rosen says. “We expect
September to be busy. i think the Dcm
market has normalized once again.” LF

Still a driver
LatAm DCM fees
Jan 1 to Sep 6, 2013
Rank

Bank

Revenue
($m)

% Share

1

Citi

47.94

11.92

2

JPMorgan

45.50

11.32

3

BofA Merrill
Lynch

32.70

8.13

4

HSBC

30.75

7.65

5

Deutsche
Bank

27.86

6.93

Subtotal

284.78

70.83

402.06

100

Total
Source: Dealogic

Keeping things level
LatAm ECM fees
Jan 1 to Sep 6, 2013
Rank

Bank

Revenue
($m)

% Share
12.63

1

Credit Suisse

56.76

2

Itaú BBA

52.37

11.65

3

BTG Pactual

47.06

10.47

4

Citi

5

Santander

37.13

75.34

449.55

Total

7.92

338.68

Subtotal

8.26

35.60

100

Source: Dealogic

Credit Suisse climbs ranking
LatAm investment banking fees
Jan 1 - Sep 6, 2013
Rank

Bank

Jan 1 - Sep 6, 2012

Revenue ($m)

% Share

Rank
1

BTG Pactual

1

Credit Suisse

120.67

9.46

Bank

Revenue ($m)

% Share

140.21

11.31

2

Citi

101.25

7.94

2

Citi

123.69

9.98

3

JPMorgan

98.19

7.70

3

Credit Suisse

102.08

8.24

4

BTG Pactual

95.31

7.47

4

JPMorgan

98.35

7.94

5

Itaú BBA

94.96

7.44

5

Itaú BBA

89.26

7.20

6

Morgan Stanley

85.84

6.73

6

BofA Merrill Lynch

60.86

4.91

7

BofA Merrill Lynch

69.03

5.41

7

Deutsche Bank

58.87

4.75

8

Santander

57.67

4.52

8

Bradesco BBI

49.51

4.00

Deutsche Bank

56.03

4.39

9

3.78

Bradesco

51.24

4.02

10

830.19

65.07

1,275.89

100

9
10

Subtotal
Total

Source: Dealogic. Includes M&A, Loans, DCM and ECM revenue

30 l atinfina nce.com - September/October 2013

Santander

46.83

Goldman Sachs

46.29

3.74

Subtotal

815.95

65.84

1,239.24

100

Total


http://www.LATINFINANCE.COM

LatinFinance - September/October 2013

Table of Contents for the Digital Edition of LatinFinance - September/October 2013

Latin Finance - September/October 2013
Contents
Front notes
People news
Debt news
Equity news
M&A news
After the storm
Advantage Mexico
Treading water
New structures
Mexico
Regaining the Initiative
Deficit Ahead
Building up
Switching Course
Brazil
Work in progress
Extreme makeover
Mind the gap
Brazilian life insurance
Andean
Breaking the fall
Reaching out
Market movers
Paraguay
Smoothing the cycles
Thinking big
Parting Shot
LatinFinance - September/October 2013 - Latin Finance - September/October 2013
LatinFinance - September/October 2013 - Cover2
LatinFinance - September/October 2013 - Contents
LatinFinance - September/October 2013 - 2
LatinFinance - September/October 2013 - 3
LatinFinance - September/October 2013 - Front notes
LatinFinance - September/October 2013 - 5
LatinFinance - September/October 2013 - People news
LatinFinance - September/October 2013 - 7
LatinFinance - September/October 2013 - Debt news
LatinFinance - September/October 2013 - 9
LatinFinance - September/October 2013 - Equity news
LatinFinance - September/October 2013 - 11
LatinFinance - September/October 2013 - M&A news
LatinFinance - September/October 2013 - 13
LatinFinance - September/October 2013 - 14
LatinFinance - September/October 2013 - 15
LatinFinance - September/October 2013 - 16
LatinFinance - September/October 2013 - 17
LatinFinance - September/October 2013 - 18
LatinFinance - September/October 2013 - 19
LatinFinance - September/October 2013 - 20
LatinFinance - September/October 2013 - 21
LatinFinance - September/October 2013 - 22
LatinFinance - September/October 2013 - 23
LatinFinance - September/October 2013 - After the storm
LatinFinance - September/October 2013 - 25
LatinFinance - September/October 2013 - Advantage Mexico
LatinFinance - September/October 2013 - 27
LatinFinance - September/October 2013 - Treading water
LatinFinance - September/October 2013 - 29
LatinFinance - September/October 2013 - 30
LatinFinance - September/October 2013 - New structures
LatinFinance - September/October 2013 - 32
LatinFinance - September/October 2013 - 33
LatinFinance - September/October 2013 - 34
LatinFinance - September/October 2013 - 35
LatinFinance - September/October 2013 - 36
LatinFinance - September/October 2013 - 37
LatinFinance - September/October 2013 - 38
LatinFinance - September/October 2013 - 39
LatinFinance - September/October 2013 - 40
LatinFinance - September/October 2013 - Mexico
LatinFinance - September/October 2013 - Regaining the Initiative
LatinFinance - September/October 2013 - 43
LatinFinance - September/October 2013 - Deficit Ahead
LatinFinance - September/October 2013 - 45
LatinFinance - September/October 2013 - Building up
LatinFinance - September/October 2013 - 47
LatinFinance - September/October 2013 - 48
LatinFinance - September/October 2013 - 49
LatinFinance - September/October 2013 - 50
LatinFinance - September/October 2013 - 51
LatinFinance - September/October 2013 - Switching Course
LatinFinance - September/October 2013 - 53
LatinFinance - September/October 2013 - 54
LatinFinance - September/October 2013 - 55
LatinFinance - September/October 2013 - 56
LatinFinance - September/October 2013 - Brazil
LatinFinance - September/October 2013 - Work in progress
LatinFinance - September/October 2013 - 59
LatinFinance - September/October 2013 - 60
LatinFinance - September/October 2013 - 61
LatinFinance - September/October 2013 - Extreme makeover
LatinFinance - September/October 2013 - 63
LatinFinance - September/October 2013 - 64
LatinFinance - September/October 2013 - 65
LatinFinance - September/October 2013 - 66
LatinFinance - September/October 2013 - Mind the gap
LatinFinance - September/October 2013 - 68
LatinFinance - September/October 2013 - 69
LatinFinance - September/October 2013 - Brazilian life insurance
LatinFinance - September/October 2013 - 71
LatinFinance - September/October 2013 - 72
LatinFinance - September/October 2013 - Andean
LatinFinance - September/October 2013 - Breaking the fall
LatinFinance - September/October 2013 - 75
LatinFinance - September/October 2013 - 76
LatinFinance - September/October 2013 - Reaching out
LatinFinance - September/October 2013 - 78
LatinFinance - September/October 2013 - 79
LatinFinance - September/October 2013 - 80
LatinFinance - September/October 2013 - 81
LatinFinance - September/October 2013 - Market movers
LatinFinance - September/October 2013 - Paraguay
LatinFinance - September/October 2013 - Smoothing the cycles
LatinFinance - September/October 2013 - 85
LatinFinance - September/October 2013 - Thinking big
LatinFinance - September/October 2013 - 87
LatinFinance - September/October 2013 - Parting Shot
LatinFinance - September/October 2013 - Cover3
LatinFinance - September/October 2013 - Cover4
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