This past summer, I went trekking in Peninsula Mitre, a remote part of Tierra del Fuego in southernmost Patagonia. We traveled in a small sailboat to Puerto Español, where we would then camp before walking for a week back to Moat, near Ushuaia. We’d not been long on the boat, however, when the wind turned fiercely against us in the Beagle Channel. The captain docked in the lee of a tiny island to wait out the storm.
We took the time to eat, drink and chat. But there was an unspoken concern that it could take a long time for the winds to calm or turn in our favor.
We wound up waiting for a couple of hours, but it felt like forever.
Waiting can be hard if you don’t know how long it will take, such as when interest rates will eventually reach a peak in the fight against inflation before starting to come down. Waits can also bring surprises. That happened in early March when Silicon Valley Bank and then Signature Bank collapsed, sparking market turmoil that has spread worldwide on fears over the health of the banking system. Will this speed up an easing in monetary policy after aggressive interest rate hikes? Ivan Canu captures this uncertainty on our cover for this issue.
The waiting is not always in vain. That’s something Rodrigo Amaral explores in our cover story: the innovative ways to raise capital at a time of tight and expensive money. Hints: removing currency risk and linking the interest rate to sustainability goals. We also look at an expected resurgence in local-currency bonds, long overlooked and now attracting more attention from investors for the good returns – and from issuers for the anticipated pick-up in demand.
We also take a deep dive into Brazil, where the new government is struggling to spur economic growth and demonstrate fiscal discipline. Thierry Ogier explores what President Lula is doing and the challenges he and the country face. One challenge could stem from an accounting debacle at a major retail chain, Americanas. This could spark a wave of corporate restructuring, Ogier finds. Rodrigo Amaral interviews Gustavo Loyola, a former central bank governor, on the setbacks of political meddling in monetary policy, which could be keeping interest rates higher than they would have been. Amaral also looks at an overhaul of Brazil’s capital markets, which could grow it to the ranks of developed markets, eventually at least.
Tom Azzopardi interviews Maisa Rojas, Chile’s minister for the environment, about how the financial sector can – and must – play a role in fighting the climate crisis. Rodrigo Alonso Cruz examines the growth of nearshoring in Mexico, while John Quigley explores the fallout of Peru’s long protests on investors’ sentiment in the country.
We also tell the stories of our 2022 Deals of the Year winners.
Well, no more waiting. Take a look inside.
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