Capital flows to Latin America: second quarter 2002

Capital flows to Latin America: second quarter 2002

Includes bibliography

Guardado en:
Detalles Bibliográficos
Otros Autores: NU. CEPAL. Oficina de Washington
Formato: Texto
Lenguaje:English
Publicado: ECLAC 2014
Materias:
MOVIMIENTOS DE CAPITAL
SISTEMAS MONETARIOS
RECURSOS FINANCIEROS
CAPITAL MOVEMENTS
MONETARY SYSTEMS
FINANCIAL RESOURCES
Acceso en línea:http://hdl.handle.net/11362/28812
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
id oai-11362-28812
record_format dspace
spelling oai-11362-288122017-09-11T12:09:28Z Capital flows to Latin America: second quarter 2002 NU. CEPAL. Oficina de Washington MOVIMIENTOS DE CAPITAL SISTEMAS MONETARIOS RECURSOS FINANCIEROS CAPITAL MOVEMENTS MONETARY SYSTEMS FINANCIAL RESOURCES Includes bibliography In the second quarter of 2002, conditions in global financial markets worsened as investor confidence deteriorated and risk aversion heightened. The revelation of corporate accounting irregularities in mature markets negatively affected investors' sentiment, causing a rebalance of portfolios in favor of higher quality assets and away from equities and low-grade bonds. Countries seen as higher risk were adversely affected by this rebalancing of portfolios. A number of Latin American countries were the focus of investors' concerns, in particular Brazil, where developments during the second quarter reflected investors' uncertainties about continuity of market friendly policies after the presidential elections, as well as worries about the possibly unsustainable dynamics of the Brazilian public sector debt. Access to international capital markets declined significantly to low-grade issuers in Latin America. Given that sovereign borrowers had covered most of their financing needs for this year, Latin American corporate borrowers, in particular, were vulnerable to the closure of international capital markets. Credit enhancements, such as secured bond issues and insurance from a third party, were required from corporate issuers in high-risk countries. By the end of the quarter, with international capital markets closed for unsecured issues, top tier corporates in Latin America started to turn to domestic markets as a source of financing. Although during most of the second quarter investors discriminated among emerging markets based on their policy stance and track record, toward the end of the quarter signs of contagion from Brazil emerged, as the correlation of emerging market bond movements with developments in Brazil increased (Table 1). In addition, contagion from Argentina was felt by neighboring countries through banking and real sector channels. A banking crisis in Uruguay was precipitated by capital outflows as liquidity constrained Argentine investors withdrew savings from their neighbor country's banks. The increased volatility in Brazil and contagion from Argentina led to a great number of credit downgrades during the second quarter. After Standard & Poor's upgraded Chile's A- foreign currency debt outlook to positive from stable in April, only downgrades followed. 2014-01-02T23:41:49Z 2014-01-02T23:41:49Z 2003-09-27 Texto Documento Completo http://hdl.handle.net/11362/28812 LC/WAS/R.25 en application/pdf AMERICA LATINA LATIN AMERICA ECLAC
institution Cepal
collection Cepal
language English
topic MOVIMIENTOS DE CAPITAL
SISTEMAS MONETARIOS
RECURSOS FINANCIEROS
CAPITAL MOVEMENTS
MONETARY SYSTEMS
FINANCIAL RESOURCES
spellingShingle MOVIMIENTOS DE CAPITAL
SISTEMAS MONETARIOS
RECURSOS FINANCIEROS
CAPITAL MOVEMENTS
MONETARY SYSTEMS
FINANCIAL RESOURCES
Capital flows to Latin America: second quarter 2002
description Includes bibliography
author2 NU. CEPAL. Oficina de Washington
author_facet NU. CEPAL. Oficina de Washington
format Texto
title Capital flows to Latin America: second quarter 2002
title_short Capital flows to Latin America: second quarter 2002
title_full Capital flows to Latin America: second quarter 2002
title_fullStr Capital flows to Latin America: second quarter 2002
title_full_unstemmed Capital flows to Latin America: second quarter 2002
title_sort capital flows to latin america: second quarter 2002
publisher ECLAC
publishDate 2014
url http://hdl.handle.net/11362/28812
_version_ 1718440821884190720

Ejemplares similares