Ecuador Bonds Recover from Distress Amid Political Optimism
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Ecuador's bonds have exited distress territory as traders believe President Daniel Noboa will be re-elected, leading to improved bond yields.
Ecuador's bonds have emerged from distress territory for the first time in more than two years as traders ramp up bets that market-friendly President Daniel Noboa will win a second term.
The extra-yield investors demand to hold Ecuador government debt dipped below 10 percentage points over US Treasuries -- the commonly used threshold for distress -- on Wednesday, according to a JPMorgan Chase & Co index. The spread is now the lowest since June 2022.
