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Ladrillos. Bricks. While real estate is probably the least alternative investment in Latin America, and specifically in Argentina, it is inescapable and critical. Over the past year, the investment climate in Argentina has suffered a series of blows that significantly affect this core area. Following re-election in October 2011, second-term President Cristina Fernandez de Kirchner instituted a series of controls stemming capital flight from the country. On Oct. 31, restrictions ...

Foreign currency exchange (Forex) has gained popularity worldwide in recent years, including in LatAm, as investors have been drawn to the Forex market’s massive size and liquidity, the speed and flexibility of Forex transactions and the possibility of earning strong returns during times of volatility and depressed markets. Now Currensee, an online trading platform, is revolutionizing Forex trading ...

Uncertainty in Europe, elections in the US, and the threat of escalating ‘currency wars’ are all key global issues likely to influence Latin American foreign exchange markets in the near future. With volatility abound, expert forex traders at City Credit Capital interviewed by Alternative Latin Investor say they expect some big opportunities for profits in 2012 ...

Emerging market economies have been the “darlings” of the investment world over the past decade, and LatAm has not been an exception.  Stocks have soared in price, appreciating by sizeable multiples over the period.  But 2011 was a year of correction marked by uncertainty, as the long-anticipated global economic recovery stalled and Europe wallowed on the brink of collapse.  LatAm economies, highly dependent on the commodity export trade, also stalled, but weakening currencies were welcomed as 2011 concluded ...

Recent selloffs in emerging market currencies, which have caused sharp drops in such LatAm currencies as the Mexican peso and Brazilianreal, are but latest development of an historical pattern, and they point to a stubborn truth: currency volatility is a problem when investing in the region, and investors are wise to hedge against it or position themselves to benefit from it. As Andrew Braine, the Director of City Credit Capital LatAm operations, “Investing in locally denominated vehicles in LatAm has its pro and cons, but being at the mercy of currency fluctuations can cause a lot of worries" ...

In August, ALI reported on the growth of the foreign exchange (Forex) trading industry in LatAm, with a focus on SPOT-trade, a UK money-management firm with their Latin American headquarters in Buenos Aires that specializes in Forex, among other investment vehicles. The global Forex market recently set a new record for average daily trading, in June of this year with US$5.12 trillion, confirming Forex’s standing as the world's largest and most liquid investment vehicle. Though LatAm contributed a disproportionately small fraction of that global total, regional interest in Forex is growing fast, both among large institutional investors and, increasingly, private investors ...

The foreign exchange (forex) market—already the world's largest and most liquid investment vehicle— set a new record for average daily trading of $5.12trillion in June. While major institutional investors dominate the sector, private investors are increasingly active, drawn by 24-hour markets and the proliferation of simple online trading programs. Geographically, forex trading remains highly concentrated, and trades conducted in Latin America represent a small segment of the global market. Latest data from the Bank of International Settlements (BIS) puts the Lat Am market at $42billion in April 2010. Within the region ...

With the new calendar year of 2011 now underway, traditional expectations of optimism are becoming entrenched and supported at a relatively early stage, in many cases becoming further emboldened on a daily basis by factors that include the continuance of low interest rates in major economies thereby fostering a global stock market rally that has bounced significantly over the past quarter with many markets returning to 2008’s pre-crash levels, the return of confidence in certain regions causing higher interest rates to choke off inflation and last but not least the somewhat quaint notion that global banking & Eurozone … 

As we publish, the scene is set for a potentially dynamic G-20 meeting of finance ministers and central bankers hosted by South Korea.The now customary purpose of this meeting will be to try and ensure ongoing global economic recovery in a framework for strong, sustainable & balanced growth. In addition the G-20 will discuss strengthening the international currencies have depreciated and lost external buying power financial regulatory system and the prospect of modernizing those against the improving value in currencies of less established or associated institutions … 

 When the last issue of ALI was released market conditions warranted a pause for those involved in FX markets. A timely respite has been provided by the World Cup soccer tournament, evidenced in part by a drop in implied volatility from 19 percent to 14 percent over the first couple of weeks in June.According to wide-ranging conversations we’ve had with global partners, the stabilization of trading conditions could not have come at a better time due to the exceptionally volatile and borderline irrational behavior in FX markets during May 2010. Many have spoken of large-scale capitulation … 

 Contrary to popular opinion, the USD has continued to strengthen against most major currencies in the first four months of 2010. The main reason for this seems to be the sudden risk-aversion towards the Eurozone as the “PIIGS” (Portugal, Ireland, Italy, Greece and Spain) crisis dominates sentiment. Reserve asset managers and sovereign wealth funds that were clamoring to buy the Euro at the end of 2009 are apparently nowhere to be seen, according to some reports.

 This absence of official buyers may or may not be true but for sure it seems that the evolution of the global FX market … 

 Our last article reviewed the roller coaster that was 2009 and many of the core themes that influenced FX market pricing and movements throughout the year. Based on further observations our analysis to date indicates that thematic overtones such as liquidity, behavioral unpredictability of the ‘human element’ and over-reaction to basic fundamentals are likely to keep FX market participants firmly entrenched and involved in what could be another dynamic yet unpredictable year ahead. January was reasonably quiet although did show the unwinding of one major recent trend as many currencies … 

Since August 2007, sporadic volatility and price turbulence witnessed by FX markets in the ‘established’ global market place have seen conventional wisdom & perceptions consistently challenged in unpredictable fashion, with wild swings in daily currency trading ranges raising questions on whether the giant pools of liquidity traditionally offered by the G-10 countries are of sufficient depth & maturity to withstand such constant barrages that may lead to more actual and potential systemic financial shocks.

These ‘major’ markets have always been perceived to be ostensibly positioned, able and more importantly willing to pave the way forward for the future growth of other vital … 

 Our last article focused on the widespread impact of change engineered by ongoing challenges to conventional wisdom and considered various trading styles that have subsequently evolved due to increased volatility and price turbulence within FX markets. Not much has altered since although it’s fair to say markets have calmed down somewhat as players mull financial and behavorial effects to date on business conditions. With a degree of stability returning, players are turning their attention toward the debate on future expectations for FX market conditions, for example attempting to understand the increasingly elevated status of and need for non-deliverable forward … 

 This piece is intended as a primer for institutional investors new to the foreign exchange market. This market is very complex and its participants and their needs substantially differ from one another. For most institutional investors (other than the ones with dedicated staff) the execution of their foreign exchange (FX) is an afterthought. Unless, you have been trading global securities for some time and you are comfortable with the magnitude of the market’s volatility. When there is the need to purchase or sell currencies for the purpose of hedging or funding a primary trade, foreign exchange becomes a derivative, a secondary trade …