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Chile’s Brutal 16% Bond Wipeout Actually Reveals Its Star Status

  • Chile took advantage of its esteem to sell long bonds
  • But those are the types of notes that have suffered the most
Long Duration  | Chile has one of the longest  USD debt durations among emerging markets

At first blush, Chile’s bonds look like a mess.

Its overseas government and corporate notes have been the worst performers this year among investment-grade emerging markets. The 16% loss is almost three times the drop for similarly rated Kuwait, and exceeds losses for other ratings peers including Israel, China and Saudi Arabia.