Panama bonds head lower on third negative outlook

Panama, Panama canal, tanker, cargo, trade route, LatAm, 575
By Oliver West
22 Oct 2020

Panama’s bonds traded lower on Wednesday, a day after Moody’s became the third agency to place the sovereign’s rating on negative outlook. Moody’s highlighted, however, that Panama’s broad bond market access remained a key credit strength.

Yields on Panama’s bonds had already begun to widen this week as investors shied away from lower-beta Latin American sovereigns amid a sell-off in US Treasuries. But Moody’s announcement on Tuesday appeared to give the sell-off further impetus.  

One trader spotted Panama’s 4.5% 2050s more than two points lower ...

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