Hungry buyers eager even for EM defaulters

09 Dec 2005

Emerging market bond investors were so eager to spice up their returns before year-end this week that they lapped up deals from three countries that have recently defaulted on or restructured sovereign debt — Ecuador, the Dominican Republic and Argentina.

The Republic of Ecuador returned to the international bond markets on Wednesday for its first issue since it defaulted in 1999.

The republic attracted a staggering $1.3bn of orders for its $650m 10 year issue, rated Caa1/CCC+/B, largely because it offered a 10.75% yield. The deal was led by ...

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