Bond Yields Are Juicy, But Don't Hide Lebanon's Debt Burden
- Outlook to depend on delivery of reforms: AllianceBernstein
- Reserves cushion blow from further outflows, Aberdeen says
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The rise in Lebanon’s bonds doesn’t get the country off the hook. Analysts say it’s time to deliver on reforms, or else the country’s debt burden may spiral out of control.
The yield on the nation’s dollar bonds due 2028 plummeted about 150 basis points from an all time high of 10.7 percent at the end of June. And while the cost to insure the country’s debt against default plunged about 135 basis points over the past week, it’s still the highest in the Middle East and Africa.