Serbia Seeks New IMF Embrace as Bond Unloved: East Europe Credit
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Seven months after Serbia sidestepped International Monetary Fund support by selling foreign-currency bonds, the looming reduction in U.S. stimulus is driving sentiment lower and the nation back into IMF talks.
Investors demanded 433 basis points, or 4.33 percentage points, of extra yield to hold Serbia’s dollar bonds instead of Treasuries yesterday, compared with 345 for Nigeria, which has the same BB- junk rating from Standard & Poor’s, according to JPMorgan Chase & Co. indexes. The spread for Hungarian dollar notes, ranked one level higher at S&P, stood at 330 basis points, the data show.