Case numbers continue to rise rapidly and the pandemic has not yet peaked in the region, even as second waves are occurring elsewhere in the world. With the spread of the virus still on the up, Latin American capital markets and liquidity remain subject to uncertainty and volatility. M&A volumes, which predict syndicated loan activity, are unlikely to rebound before the pandemic retreats and there is better visibility of target company performance and valuation. Distress is also starting to come through the market, with the region's airline industry particularly hard hit. LATAM, Avianca, and Aeromexico, three of Latin America's largest operators, have filed for bankruptcy protection under Chapter 11 in the US, while there are reports that auditors for Brazil's Gol Linhas Aereas Inteligentes are expected to include a warning in the company's accounts about its future viability.