Americas: Latin American Debt - Investors Leave Cash South Of Rio Grande - Latin American Market Investors' Sanguine Reaction To The Debt Crisis Shows How Far The Continent Has Come In Cushioning Itself Through Strong Macro Policies And Solid Growth. John.

Banker, The, November, 2007 by Rumsey, John

Byline: JOHN RUMSEY

Previous international debt crises were all too predictable in their wash- down effect on Latin America. They swiftly led to an exodus of cash, north over the Rio Grande in search of the safety of US Treasuries.

The crisis, triggered by the US subprime crisis that started in July, did see Latin American primary markets slam shut, with a pipeline of close to 15 deals put on hold, a seeming repeat of previous patterns. But this time, the turmoil was neither as deep nor as long lasting.

Just two months down the line and deals were being priced while volatility in secondary markets had reduced significantly. The knee-jerk 'flight to quality' was avoided; some say that the pattern has been reversed, with cash coming out of...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.