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Chile Debt Sale Window Opens as Investors Ignore Mounting Risks
Key Points
Chile Debt Sale Window Opens as Investors Ignore Mounting Risks Chile’s government has a window of opportunity to sell debt abroad as sovereign spreads hover near two-decade lows, with investors shrugging off an escalation in the Middle East conflict, domestic debt woes and a stagnating economy. The extra yield investors demand to hold Chile’s dollar bonds over US Treasuries has tightened 24 basis points to 82 points since the end of March, nearing levels last seen in 2007. At the same time,...
Chile Debt Sale Window Opens as Investors Ignore Mounting Risks
Chile’s government has a window of opportunity to sell debt abroad as sovereign spreads hover near two-decade lows, with investors shrugging off an escalation in the Middle East conflict, domestic debt woes and a stagnating economy.
The extra yield investors demand to hold Chile’s dollar bonds over US Treasuries has tightened 24 basis points to 82 points since the end of March, nearing levels last seen in 2007. At the same time, the cost of insuring against a default has fallen below where it stood before the US launched airstrikes on Iran.