Guatemala Debt Beats Regional Peers as Tax Plan Reverses Deficit

Guatemala’s month-old dollar bonds are delivering the best returns in Central America as President Otto Perez Molina takes steps to improve tax collection and cut spending.

Guatemala’s 10-year dollar bonds, the country’s first global notes since 2004, have returned 5.7 percent since they were sold on May 31, compared with 2.2 percent for El Salvador’s 2023 notes and 2.8 percent for Panamanian bonds, according to JPMorgan Chase & Co.’s EMBIG index and data collected by Bloomberg. Similarly rated Latin American debt has returned 2.5 percent, according to Credit Suisse Group AG’s LABI index.