Investors Burned Just Two Weeks After Flocking to Ecuador
- Two weeks after selling bonds protests hit Ecuador’s capital
- Nation’s bonds have tumbled more than 5% since the bond sale
People protest in Quito on Oct. 10.
Photographer: Martin Bernetti/AFP via Getty Images
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Ecuador seemed to be doing everything right, narrowing its fiscal deficit and encouraging investment. But this is Latin America, of course, and things can change in an instant.
Just two weeks after selling $2 billion of bonds, a wave of protests forced President Lenin Moreno’s government to flee the capital as it warned of a coup. The country’s bonds have tumbled 5.1% since the issuance, more than any developing nation not in default, according to data compiled by Bloomberg.