Latin American Debt Emerges as a Haven 6,000 Miles Away From War
- Region’s dollar bonds outperformed since Ukraine war started
- Investors favor state-run oil producers and inflation linkers
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Latin America is emerging as an oasis of stability amid the global bond rout spurred by the Ukraine war, benefiting from a 6,600-mile distance from the conflict.
The region’s dollar-denominated sovereign and corporate bonds returned 0.4% since Russia invaded Ukraine in late February, compared to a 9.8% loss in Eastern European, Middle Eastern and African notes and an almost 3% slide in Asian debt, according to Bloomberg indexes. It was also a brutal period for U.S. Treasuries, which went through their worst quarter of modern times.