What to do with Petrobras? Embroiled in a corruption scandal that shows no sign of ending, the Brazilian energy giant faces a truly miserable year ahead. Wherever the company looks, it sees enemies and threats. A political elite fearful of being entangled in its woes, or determined to shine a light on its allegedly shady practices. A jittery investor base uncertain of the company’s true value, or the extent of its once-unquestioned political support. And a perilous race to source enough cash to

A striking characteristic of the vast Lupuna tree that dominates the Amazon rainforest is its huge buttress roots that anchor it in this unique bioregion’s surprisingly shallow soil. The roots of the giant ceiba ­– considered in folklore as the guardian of the rainforest – evoke the role played by the multilateral banks in sustaining a shallow but potentially huge market for Green bonds. There are signs that 2015 could witness a significant breakthrough in Green bond financing in a market potent

Venezuela is hopelessly reliant on its oil sector. Little else in its economy can take up the slack when the oil price drops. Even when the oil price is high the country lives beyond its means. But the recent dip in the oil price has left Venezuela hugely exposed, pushing it to the brink of default. The country itself has been tight-lipped on the state of its economy, feeding speculation that it has something to hide. But late last year an adviser to the country’s main opposition group said the

Argentina’s long-standing battle with restructuring holdouts is like the finance industry equivalent of Boyhood, the Oscar-nominated film by director Richard Linklater that was shot over a 12-year period, retaining the same cast throughout and reuniting them to shoot scenes for a few days every year or so before everyone went back to their day jobs. Like Linklater’s film, Argentina’s dispute with the hedge funds it calls vultures began in 2001, and over the past 14 years it has featured many of

The hero of 1940s’ Mexican cinema was Cantinflas – often referred to as the Mexican Charlie Chaplin. From the launch of his comedy Ahi esta el detalle, in English known as You’re Missing the Point, his character was taken to the heart of audiences and came to personify the spirit of Mexico itself, the underdog who triumphs. In many ways, the spirit of Cantinflas is reflected in the way that Mexico has become one of the darlings of the emerging market sovereigns. Under the leadership of President

Capital markets go in cycles, and never more so than in Latin America. The past decade has been typically turbulent, with equity capital markets switching from scorching hot to the deep freeze. In 2010, ECM issuance across the region reached US$54.6bn, according to data from Thomson Reuters, a post-financial crisis record. Petrobras alone raised US$27.5bn in a follow-on that year, not including US$42.5bn that the Brazilian government invested in the oil company at the same time. Volumes then fal

Latin America’s lending market is in a strange place, caught between a bright past, a turbulent present and an uncertain future. Last year was a genuine blessing for an asset class that has struggled for traction and relevance in recent years. Borrowers benefited from better pricing and terms as lenders rushed back to an asset class they once shunned.  Landmark deals were hammered out in 2014, notably a US$1.8bn, five-year term loan issued by Peru’s Sociedad Minero Cerro Verde, one of the larges

Latin America’s bond markets have enjoyed exceptional growth since the financial crisis, with a diversified supply of sovereign and corporate issuers driving total issuance in the region from US$24.3bn in 2008 to US$139.8bn in 2014. However, as political and economic headwinds take their toll on Brazil, which has historically been the most active country for issuance, market participants are bracing themselves for a significant drop in volume this year. “We have had an unusually slow start to th