Lebanon Bond Sell-Off Eclipses Argentina as Unrest Flares Up

  • Nation’s 2034 bond drops most among EM dollar sov. debt Friday
  • Lebanese army deployed heavily across the country this week

A fire fighter extinguishes burning pipes and tyres set ablaze by anti-government protesters blocking the highway at the southern entrance of the northern Lebanese city of Tripoli on Nov. 14.

Photographer: Ibrahim Chalhoub/AFP via Getty Images

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Lebanese bonds have overtaken Argentine debt as the second-worst performer this year, showing the financial toll that the social uprising has taken on one of the world’s most indebted nations.

Investors in Lebanon’s dollar-denominated notes have lost 30% this year, eclipsing the 27% decline for holders of Argentine securities. Lebanese notes maturing in 2034 fell 7% on Friday, the worst for sovereign dollar bonds in emerging markets. Its 2033 is the next worst-performing among developing nations.