Reforms are starting to work in Latin America.
Interesting article from Bloomberg Markets, which discusses how reform initiatives in Latin America are succeeding:
Latin American notes have been supported by a jump in corporate profits -- earnings are up almost 20 percent in the second quarter from a year earlier -- brought on by the fastest economic growth since 2013. Traders see the rally getting fresh support from measures such as a pension overhaul in Brazil, a loosening of price controls in Argentina and fiscal tightening in Mexico.
“The broad outperformance in Latin America -- particularly Argentina, Mexico, and Brazil -- speaks to the broad reform programs we have seen in each of these countries and the stable backdrop these reforms have provided,” said Kofi Bentsi, a money manager focused on emerging-market corporate bonds at Pimco, the second-largest U.S. fixed-income management firm. He says Argentina and Brazil are likely to continue to outperform.