LatAm Sovereign YTD International Bond Issuance Exceeds 2019 Total

• Latin American sovereigns have tapped international bond markets at a faster pace and in greater amounts in 2020 than in 2019 to help meet higher funding needs, supported by highly expansionary monetary policy settings at the world's major central banks.
• Reliable international market access limits sovereigns' liquidity risk and supports financing flexibility, although ramping up hard currency borrowing increases the sensitivity of debt ratios to exchange rates.
• External issuance by Latin American sovereigns of US$42.5Bn year-to-date already exceeds last year's total of US$34.5Bn and is higher than the 2015-2019 annual average of about US$30Bn, excluding Argentina. 2020 volumes do not include bonds issued in distressed debt exchanges.

(Source: Fitch Solution)