Ecuador’s dollar bonds have slumped as investors price in a higher probability of default following the crash in crude oil prices. The nation’s dollar bonds due 2028 fell 10.6 cents, to 47.6 cents on the dollar on Monday, sending the yield surging 4.3 percentage points to 22.3%. The extra yield investors demand to hold Ecuadorian debt over U.S. Treasuries blew out 753 basis points to 27.33 percentage points. That compares to 28.16 percentage points for Argentina which is preparing to restructure its debt. Current prices discount “a high probability of default,” for the oil producer, said Siobhan Morden, the head…
Want to read the whole story?
Subscribe to The Cuenca Dispatch and gain full access to this story, weekly issues, plus the entire running archive! With your subscription, you will gain access to all the news you'll need concerning Ecuador as a United States expat.
Get access to our most read articles
- Cuenca expat scene is ‘changing before our eyes’
- Ecuador achieves four agreements after meeting at the White House
- Immerse yourself in Cuenca’s bountiful markets
- Los Perniles
- CRIME REPORT
- Cuenca identifies 7 most dangerous places to be a pedestrian in the city
- Ecuadorian named to Time magazine’s 100 most influential people list
- Tame temporarily suspends flights to Fort Lauderdale
- Global warming? Most of the hot air is generated by politicians
- The American dream: The experience of an Ecuadorian woman who fell in love with your country.