Ecuador Bonds Exit Distressed Ranks After Election-Day Surprise
- Markets give Ecuador another chance after career banker’s win
- Dollar notes due 2030 skyrocketed 18 cents post-election
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The victory of a career banker in Ecuador’s presidential election just made the serial-defaulting nation’s dollar debt a whole lot less risky. The question is whether it’ll stay that way.
The recently restructured bonds emerged from distressed territory after Guillermo Lasso was elected Sunday, stoked by investor optimism that the new government will shore up the economy and stick to fiscal austerity measures needed for a program with the International Monetary Fund. The problem is that he will face a fragmented congress, which could make governing a challenge.