MNI EM Credit Weekly: Navigating Volatility in LATAM

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EXECUTIVE SUMMARY

• Trade talks between US-China set the tone for the week, as investors anticipated a mutually positive outcome. Benchmark bond spreads tightened across all regions.
• In focus for EM this week was the persisting spread volatility in Argentina and Brazil.
• Next week we expect primary issuance from Korea, including from KEXIM, KORELE, and KOLAHO; more of the same in CEEMEA with earnings continuing to flow and sporadic issuance; whilst LATAM market focus turns to Brazil corporate earnings with conglomerate CSN a potential market mover.