Amerant CIO bullish on Latin America debt

Описание: Amerant Investments chief investment officer Baylor Lancaster-Samuel talked with Proactive's Stephen Gunnion about shifting investor sentiment toward Latin American debt markets following recent US-led intervention in Venezuela and the broader implications for corporate credit spreads across the region.

Lancaster-Samuel explained that despite geopolitical tensions, credit markets have reacted constructively. Venezuelan sovereign and corporate debt have rallied on expectations of a potential restructuring, while the broader Latin American credit complex has tightened in sympathy. She noted that markets are pricing in optimism around renewed US strategic interest in the region and the possibility of stronger trade ties.

Addressing concerns about oil markets, Lancaster-Samuel emphasised that Venezuela accounts for less than 1% of global oil production, limiting immediate global supply impacts. While rehabilitation of Venezuelan oil infrastructure could increase production over time, she said the short-term effect on global markets remains minimal. Higher oil prices have provided some support to energy producers in countries such as Colombia.

She also highlighted idiosyncratic pressures in Brazil and noted that Mexican corporates may experience volatility ahead of USMCA renegotiations. However, her baseline expectation is that an agreement will ultimately be reached.

Importantly, Lancaster-Samuel stressed Amerant Investments’ disciplined investment approach: “We are very focused on fundamentals and analysis on each specific company.” She added that spreads in Latin America “tend to be wide” due to geopolitical fears, but investors are being compensated for that risk. Concluding, she stated, “We’re actually very positive on Latin America at this time.”

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