In Short
The Situation: The novel coronavirus (COVID-19)
global pandemic has resulted in extreme market volatility with many
listed bonds trading at a significant discount to par.
The Opportunity: In the current environment,
Latin American issuers with bonds listed on the Irish, Luxembourg,
or Singapore Stock Exchanges that are trading at a significant
discount may start to consider whether they should repurchase their
bonds.
Looking Ahead: Bond repurchases, or debt
buybacks, may present an opportunity for Latin American issuers to
improve their overall capital structure and reduce their interest
expense. However, conducting bond repurchases requires an
issuer-specific analysis.
