Investors also like those high Latin yields, which are running from 400 to 700 points above comparable U.S. Treasuries. The resulting Latin rally allays some of the fears that corporations would be shut out of capital markets in 1999, aggravating the region's slowdown. For now, the appetite for debt is limited to top Latin companies, but successful corporate issues in coming weeks could pave the way for midsize businesses to issue paper later this year. Buyers of Latin bonds still need to exercise plenty of caution. These uncertainties put a lot of pressure on the Brazilians.
Investment bankers are high on the offer.
A successful Brazilian offer would add buoyancy to credit markets. That would ease the pain of Latin America's economic woes. The McGraw-Hill Companies Inc. All rights reserved.