IDEAS home Printed from https://ideas.repec.org/p/ecr/col896/42718.html
   My bibliography  Save this paper

Capital Flows to Latin America: 2017 Year in Review

Author

Listed:
  • -

Abstract

The total amount of debt issued by LAC borrowers from January to November 2017 reached US$ 138 billion, the highest annual amount ever issued in the region. Investors’ enthusiasm for LAC assets was supported by synchronized growth at the global level, still low interest rates across de globe (with only a very gradual tightening in the United States), weakness in the U.S. dollar, and an improvement in the region’s own economic conditions. On the sovereign side, seventeen countries tapped international bond markets this year, with Argentina topping the list with 28% of the total sovereign issuance from January to November. The strong cross-border market performance was supported by a tightening in bond spreads. LAC bond spreads tightened 56 basis points from January to November 2017. However, despite a tightening in spreads, the credit quality in the region continued to deteriorate: there were 24 sovereign downgrades from January to November, and 10 upgrades. Although current expectations suggest credit conditions will continue to be favorable in 2018, challenges remain. Domestically, a heavy election cycle next year may lead investors to delay plans and may bring uncertainty. Regarding the external environment, while forecasts seem optimistic, an asset price correction or a geo-political surprise could lead to capital outflows from the region.

Suggested Citation

  • -, 2017. "Capital Flows to Latin America: 2017 Year in Review," Oficina de la CEPAL en Washington (Estudios e Investigaciones) 42718, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  • Handle: RePEc:ecr:col896:42718
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/42718
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. -, 2018. "Fiscal Panorama of Latin America and the Caribbean 2018: public policy challenges in the framework of the 2030 Agenda," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 43406 edited by Eclac.
    2. -, 2018. "The challenges facing Latin America and the Caribbean regarding financing for the 2030 Agenda for Sustainable Development," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 43421 edited by Eclac.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col896:42718. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.