Costa Rica: Sovereign Debt Loses ValueThe rise of interest rates in US is one of the reasons behind the lower demand for Costa Rican debt bonds, which are perceived as riskier because they are not investment grade.Tuesday, December 15, 2015
When US interest rates began to fall, international investors sought riskier options and performances, such as external debt bonds rated below investment grade in countries such as Costa Rica. Now that an increase in US rates has been confirmed, investors are beginning to abandon riskier options to move to others which have equal or better performance but with lower risk. Source: Nacion.com ¿Busca soluciones de inteligencia comercial para su empresa?Risk Rating and Investment AttractionMarch 2019 The latest risk ratings for the issuance of long-term debt of Central American economies identify Panama as the most attractive country to invest in. Costa Rica: Growth in Demand for EurobondsJuly 2016 Low interest rates in the international market have favored Costa Rican sovereign debt bonds which are yielding better dividends. Perception of Debt Risk Increases in Costa RicaDecember 2014 The difference in the yield on 30-year bonds relative to US Treasuries of the same period went from 3.33% in April to 3.85% up to December 4th. Fiscal Deficit Takes a Toll on Costa RicaSeptember 2014 The risk premium demanded by investors for the Costa Rican international bond due in 2023 rose from 2.10% to 2.56% between June and September 2014.
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