Latin Local Bonds: Foreign Fund Managers New Focus

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Latin Local BondsForeign Fund Managers New Focus

• Gary N. Kleiman
• Senior Partner
• Kleiman International Consultants, Inc.

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Global Trends

• Local emerging debt markets
• approaching equity market size
• Other regions growth Asia/Europe
• Performance/Ratings Background
• Economic/Monetary Conditions

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Domestic Fixed Income Catalysts

• Trading volume equal to Brady/Eurobonds
• Benchmark Inclusion
• Morgan, Lehman Brothers
• Integrated High Yield Strategy
• Across asset class, investor base
• Derivatives Use

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Latin American Participation

• Concentration
• Argentina, Mexico, Brazil
• Treasuries, prime corporates
• Maturity extension
• Liquidity improvement
• Pension/Mutual fund evolution
• Anti-crisis placement priority

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IDB Action Recommendations

• Regionalization
• Recent Chilean issue
• Centam/Caribbean exchange precedents
• Creditor rights/bankruptcy codes
• Instrument innovations repos, CBOs, etc.
• National guarantor, insurer promotion
• Data base formation indices, statistics