Skip to content

Ecuador Bonds Slump as Protests Revive Memories of 2020 Default

  • Nation’s bonds are worst performing in world this month
  • Spread over US Treasuries has widened to most since April 2021

Ecuador’s debt is nosediving as a wave of protests by indigenous groups revives memories of the political chaos that preceded the nation’s last default just two years ago.

The country’s 2035 notes have slumped almost 10 cents to 54 cents on the dollar this month, pushing their spread to similar US Treasuries up about 180 basis points to the highest since April 2021, when Guillermo Lasso won the presidential election. They are the worst-performing sovereign bonds in the world this month.