Ecuador Defaulted Last Year. Now Its Bonds Are World’s Best – Bloomberg

Ecuador Defaulted Last Year. Now Its Bonds Are World's Best - Bloomberg
Ecuador Defaulted Last Year. Now Its Bonds Are World's Best - Bloomberg

Ecuador’s Bonds Are World’s Best

Across the world, government bondholders have seen losses pile up this year as a pickup in inflation and economic growth puts central banks under pressure to raise interest rates.

That makes even more remarkable the windfalls seen in Ecuador, a junk-rated South American nation that was mired in recession even before the pandemic and was forced to restructure $17.4 billion of debt last year — a step rating companies considered a default.

MARKETS: Ecuador’s Bonds Are World’s Best

Ecuadorian President Guillermo Lasso Takes Office

Guillermo Lasso leaves the National Assembly after being inaugurated in Quito on May 24.

Photographer: Johis Alarcon/Bloomberg

The returns on the nation’s bonds have topped 28% this year, more than any other country, according to a Bloomberg Barclays index. It’s the result of a confluence of factors: a steady vaccination campaign, rising oil prices and optimism that the April election victory of President Guillermo Lasso, a former banker, will usher in a wave of market-friendly reforms.

The gains stand in contrast to the experience of investors in other major Latin American countries that have seen political unrest or the rise of left-wing parties amid the economic toll of the pandemic. Neighboring Colombia this year was rocked by bloody protests over the president’s ill-fated tax hike plans. In Chile, a former student protest leader to the far left of the nation’s political spectrum is ahead in the presidential race. And Peru’s markets have been whipsawed as President Pedro Castillo, a former rural schoolteacher from a Marxist party, called for a new constitution and a briefly delayed the appointment of his finance minister. On Friday, Moody’s Investors Service downgraded El Salvador.

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International Business Consultant


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MSc Econ Lassi Pensikkala International Business Consultant
MSc Econ Lassi Pensikkala International Business Consultant founder MSc Econ Lassi Pensikkala is the creator of hashtag #GoodNewsfromEcuador


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By MSc(Econ) Lassi Pensikkala - International News Curator: Travel, Golf, and Business

Lassi Pensikkala is the creator of He writes regularly providing thought leadership on topics related to Travel, Golf, Business, Health, and Lifestyle. You can follow him on Telegram or connect on Linkedin. You can read his travel and golf news in Google News, and business and travel magazines on Flipboard @amerexperience Expertise: International Travel and Business Expert, Creator of and Avid Golfer - Education: Studied Foreign Trade in Business College of Turku Finland, and Economy, Psychology and Sociology at the University of Hamburg graduated as MSc(Econ) - Language skills: Multilingual - English, German, Spanish, Swedish and Finnish - Life philosophy: 1959 and the 60’s were the golden times of Rock’n Roll, student movements, and first flight to moon. The nordic people were free to travel in the Scandinavian countries including Finland. No passports or travel documents were needed. The freedom still today is the most important for the Scandinavians from that epoch. Freedom is to travel, learn to know new countries and other languages, and meet different people and cultures. He wishes the new generations would have the same possibilities experiencing all that what makes you feel free, and building a strong personality. -

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