LatinFinance - September/October 2013 - 4

SEPTEMBER/
OCTOBER
2013
FRONT NOTES

EDITOR-IN-CHIEF taimur ahmad
NEWS EDITOR Ben miller
FEATURES EDITOR Katie llanos-Small
REPORTERS mariana Santibáñez,
Karen Schwartz
CONTRIbUTORS nancy areco, lucien chauvin,
lucy conger, Jason mitchell, thierry ogier
ART DIRECTOR Rosa matamoros-Sense
COVER ILLUSTRATION fredrik Broden
CARTOON ILLUSTRATION christopher Weyant

—

M

arkets breathed a sigh of relief in September when the US federal Reserve chose to
delay winding down its $85 billion per month bond buying program.
nowhere relished the news more than the emerging world, where markets had tumbled since the
first hint in may that the stimulus would be curtailed sooner than previously thought.
latin assets, in particular, received a much-needed shot in the arm: stocks, bonds and currencies
that had lost ground in the preceding months to a rapidly strengthening dollar, rallied. the change in
sentiment granted a welcome respite to authorities that had been struggling to stabilize their exchange
rates while suffering persistent capital outflows.
for now, fears of a sovereign and corporate funding crunch have abated. companies have rushed to
take advantage of the renewed fervor for emerging markets, with a number of issuers returning to the
debt markets amid the vastly positive change in sentiment.
But the fed’s delay merely postpones the inevitable. While it has given some breathing space to
emerging markets, the central bank nevertheless left open whether it will start tapering its bond buying
this year. the result simply adds to the uncertainty which has contributed to volatility in global financial markets. markets will have to consider the cost of that decision when the withdrawal finally comes.
in the bigger scheme of things, trimming the volume of purchases, whenever it happens, will only be
the first step. though it may today seem a long way off, a tightening cycle in US monetary policy is also
inescapable once the US economy picks up enough pace — and when it comes, emerging markets will
face stiff competition for capital.
Just a year ago, the imf urged emerging markets to take advantage of what many thought then was
their golden moment. While highlighting their achievements in strengthening policy, the fund warned
that more work was needed.
for latin america, the importance of those warnings should be clearer than ever today. latin
america’s best performers — chile, colombia, mexico and Peru — have already felt the pinch.
the imperative for structural reforms is nowhere as clear as in Brazil. the region’s biggest economy
still faces growing financial vulnerabilities from
its recent credit binge.
although it is likely to
have averted a full-blown
crisis and looks set to
muddle through at least
until next year’s elections, it has nevertheless
lost its appeal of just a
few years ago.
no matter the relief
over the fed’s latest decision, how policymakers deal with the turn
in the cycle will set the
tone for latin financial
markets in the months
ahead. LF

4 l atinfina nce.com - September/October 2013

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EVENTS PROGRAMMER aarti Bhatnagar
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MARKETING MANAGER marina carbone
CIRCULATION MARKETING MANAGER
Patricia arcic

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OFFICE MANAGER teresa Romero
ASSISTANT TO THE CEO Vicky maqueira

—

LATINFINANCE bOARD OF DIRECTORS
PRESIDENT christopher Garnett
DIRECTORS taimur ahmad, Stuart allen,
colin Jones, Giuliana moreyra

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Stuart allen
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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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