Ecuador Defaulted Last Year. Now Its Bonds Are World’s Best
- Sovereign notes have returned 28% this year, most in the world
- ‘Ecuador is becoming a bit of an island in the region’
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Across the world, government bondholders have seen losses pile up this year as a pickup in inflation and economic growth puts central banks under pressure to raise interest rates.
That makes even more remarkable the windfalls seen in Ecuador, a junk-rated South American nation that was mired in recession even before the pandemic and was forced to restructure $17.4 billion of debt last year -- a step rating companies considered a default.