Latin American Bond Sales Smash Forecasts, Surge to Highest Level on Record

Latin American companies and governments are issuing debt at a pace that has far exceeded expectations, with bond sales reaching record levels despite a volatile global backdrop tied to President Donald Trump's return to the White House.

Issuers from the region have sold just over $184 billion in international bonds so far this year, nearly 50% more than in 2024 and the highest amount in data going back to 2014, according to Bloomberg. Bankers say it is likely the strongest year for Latin American bond issuance since the market took shape in the 1990s.

"That is going to be the absolute record," said Lisandro Miguens, JPMorgan Chase & Co.'s head of Latin America debt capital markets to Bloomberg, while Citigroup's Adrian Guzzoni added: "I don't think anybody would say that it doesn't surprise them."

Lower U.S. interest rates, refinancing needs tied to pandemic-era borrowing and strong investor demand for yield have driven the surge. Mexico led issuance with about $41 billion in hard-currency bonds, while Brazil logged its busiest year since 2010. Argentine companies also tapped international markets aggressively, selling more than $12 billion in debt, much of it after President Javier Milei's strong showing in October's midterm elections.

Investor appetite has been reinforced by steady inflows into emerging-market bond funds. According to EPFR Global data compiled by Bank of America, developing-nation bond funds recorded inflows in 34 of the past 35 weeks, with year-to-date net inflows exceeding $60 billion. Spreads on emerging-market dollar bonds have tightened to multi-year lows, opening a window for refinancing.

Governments accounted for about 55% of issuance, Bloomberg data show, with even smaller economies managing to access global markets. Mexico and Colombia turned to euro-denominated bonds, while some sovereigns experimented with alternative structures and currencies to manage balance-sheet pressures.

Bankers said issuance is likely to remain elevated into 2026, particularly for corporate borrowers, supported by ongoing investment needs and expectations of further easing by the Federal Reserve.

The strength in bond markets comes alongside continued investor exposure to Latin American assets more broadly. A separate Bloomberg Línea analysis published this week found emerging-market funds maintaining sizable allocations to Latin American equities, particularly in Brazil and Mexico, citing valuation discounts, resilient earnings and demand tied to commodities and energy.