El Salvador rally withstands volatility as bonds look beyond midterms

Nayib Bukele, El Salvador, presidente, Central America, LatAm, 575, Covid-19, facemask, coronavirus
By Oliver West
26 Feb 2021

El Salvador’s bonds retained recent gains on Thursday as EM’s riskiest credits proved resilient to the week’s US Treasury sell-off, with bondholders hoping that Sunday’s mid-term elections will give president Nayib Bukele the political capital he requires to implement an IMF programme.

The B3/B-/B- rated Central American sovereign’s bonds rallied strongly this week in the run-up to Sunday’s election, at which Bukele’s Nuevas Ideas party is expected to gain at least a simple majority in Congress.

Though Bukele has received criticism from organisations including Human Rights Watch and the Organisation ...

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