Spread on Costa Rican bonds widens to record
Thursday, December 11, 2014
The extra yield investors demand to hold Costa Rican bonds instead of similar-maturity U.S. Treasuries widened to a record as the country struggles to contain a growing fiscal deficit.
The extra yield, or spread, on the Central American nation’s 2023 bonds climbed to 354 basis points, the most since the bonds were sold in November 2012.
The government may sell as much as $1 billion in global bonds next year to finance a fiscal deficit forecast to widen to 6.7 percent of gross domestic product, up from a projected 6 percent this year.
Source: Bloomberg