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Nomura Securities analyst favors Dominican Republic dollar debt over El Salvador

Tuesday, January 24, 2012


Nomura Securities recommends buying Dominican Republic’s dollar bonds and selling securities from El Salvador as the Caribbean country limits spending to qualify for funding from the International Monetary Fund.

Benito Berber, a New York-based strategist, advised investors to switch from the Dominican Republic’s dollar bonds due in 2021 to El Salvador bonds due in 2019, as the yield gap between the securities may narrow.

Dominican Republic “authorities are likely to be careful about putting further pressure on the external accounts by running a lax fiscal policy in coming months,” Berber wrote in a note to clients.


Original source: Bloomberg