Ecuador Yields Surge Above 20% as Oil Rout Boosts Default Risk

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…

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