Rise in Sovereign Bond Price in Costa Rica

Although they have recovered the upward trend seen before Moody's withdrew the investment grade rating, they still have not returned to the pre-announcement levels.

Wednesday, October 29, 2014

Prices of Costa Rican debt securities increased between 1.2% and 4.5% on the international market, with those with a maturity of 2043 registering the highest increase, "... which ended up being traded at a price of 83% on 17 September, registering 87.5% on 27 October. This represents a rise of 4.5 percentage points. "

Elfinancierocr.com reports that "... The bonds maturing in 2025 and 2020 reported a rise of 1.75 and 1.20 percentage points respectively. The case of the 2044 bond saw a different situation, since its lowest reported level was on September 29, when it traded at 100.5%. On October 27, the price was 102.25%. "

However, "... the prices have not returned to the levels seen before the effect of the expectation of the downgrade. According Hernan Varela, an analyst at Aldesa, for the moment, the market is aware of the news about the budget as well as the behavior of bond rates in the US, and this is what has prevented a return to better prices. "



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