Latin America Bond Resilience

Many Latin American governments have shifted from dollar borrowing to issuing debt in their own currencies. That change—Brazil reportedly issues ~96% of sovereign debt in reals, Mexico >80% in pesos—means commodity exporters can gain dollars during commodity price shocks and avoid the old "original sin" sovereign‑debt collapse. — If durable, this makes parts of Latin America materially less vulnerable to dollar shocks and could reallocate capital, alter emerging‑market risk premia, and reshape geopolitical safe‑haven dynamics.