Two More African Nations Fall Into Distress as Debt Risks Rise
- Angola, Gabon bonds pass 1,000-point spread over US Treasuries
- Number of distressed emerging-market nations at record of 21
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Angolan and Gabonese sovereign bonds are trading at distressed levels, raising the number of emerging-market nations at risk of default to a record.
Each of Angola’s six dollar-denominated government bonds and three from Gabon are trading at more than 1,000 basis points above US Treasuries, a threshold that signals a nation may struggle to repay its debt, according to data compiled by Bloomberg. The sovereign bonds of Nigeria, Kenya and Egypt fell into distressed territory recently.