Panama bonds top emerging-market returns as Latin America becomes crisis haven
Dollar bonds of Latin American nations from Panama to Uruguay provided the best returns in emerging markets this year, a rally that may extend into 2012 as lower debt and higher foreign reserves limit the effects of the European debt crisis.
Panama’s notes advanced 16 percent this year with annual volatility of 4.5 through December 27, giving them a risk-adjusted return of 3.5 percent.
Latin American nations won 12 credit-rating or outlook upgrades as Panama’s $13.5 billion infrastructure investment plan boosted growth, Colombia pledged to cut its budget gap in half and Uruguay boosted foreign reserves 27 percent in a year.
Original source: Bloomberg