Private-equity firm General Atlantic has invested $127 million in specialist online trading firm Saxo Bank, making it the largest shareholder after its co-CEOs. Global investors piling into local currency debt, desperate to find higher yields and diversify out of the dollar, have been a significant driver of this trend. Latin American governments are becoming increasingly reliant on swapping their debt into local currency to enhance their creditworthiness, even though the underlying fiscal situation remains unchanged, according to a report issued last month by ratings agency Standard & Poor's.
Governments swap to raise creditworthiness
