Summary: For all countries excluding Mexico, analysts are expecting the reversal of their tightening cycles and are trying to predict the beginning of rate cuts. Even bonds considered extremely toxic could offer an interesting opportunity. Latin America is likely to continue offering attractive returns for the time being in order to compensate investors for the region’s inherent risk.
Cemex (NYSE:CX) has reduced debt and increased profitability enabling a healthier balance sheet. USD exposure is manageable given the higher returns in the US business. Insufficient capacity for competitors in Mexico has allowed CX to regain a portion of the market share lost in recent times as cement volumes increased 12% YoY vs. the industry. Continue reading Cemex Improves Balance Sheet And Remains Attractive
Mexico’s EWW down 3.3% last week as 2Q16 results disappointed. AMX plunged 8.3% while Cemex rose 10.9%. Brazil´s EWZ continues uptrend posting a weekly gain of 1.2%. VALE ´s results surprised while Ambev missed estimates. Continue reading Heatmap Weekly Summary (July 29)
We analyze here some of the expected benefits of Colombia’s accession to the elite OECD club. Mexico and Chile are currently the only two countries in Latin America to hold OECD membership. When it comes to Latin American economies joining the OECD club, the act of going through the acceptance process can turn out to be as beneficial as the membership itself. Continue reading Colombia’s Accession To The OECD: Expected Benefits In Light Of The Mexican And Chilean Experiences
Summary: Venezuela will likely default in November or April. We present here some of the recent events taking placed in the troubled LatAm economy. The IMF just revised its forecast for Venezuela’s economic growth this week. Economic activity will fall 10% in 2016 – not 8%, as previously stated. Two questions in the air: Will China save Venezuela? Will it demand Maduro to step down?
Continue reading Venezuela: Default Looms
Weekly update and analysis on what is happening in our all-LatAm ADR sample. Main LatAm markets continued rallying as the IMF revised upward GDP growth Continue reading Heatmap Weekly Summary (July 22nd)
We present a snapshot of Mexico’s real estate market, focusing on REITs. FUNO, Danhos, Terrafina and Macquarie are the largest FIBRAs in the market and they all went public in the past 5 years, in addition to 6 follow-on offerings. Incentive misalignment and liquidity seem to be the biggest concerns for institutional investors looking at Mexico’s public Real Estate market. Continue reading Mexico’s Real Estate Market Going Public