Two African Debtors Exit Distressed Club, Leaving Only Senegal
Senegal’s authorities have repeatedly voiced their discomfort in entering into a debt restructuring.
Photographer: Patrick Meinhardt/AFP/Getty ImagesSenegal has been left as the only African nation with a sovereign risk premium in distressed territory after yields on the debt of Mozambique and Gabon narrowed relative to US Treasuries.
Investors demand a premium of 1,247 basis points to hold Senegal’s dollar bonds rather than US Treasuries, according to JPMorgan Chase & Co. indexes. A level above 1,000 is widely seen as marking debt distress.