Taken from: www.nacion.com
The prices of the bonds of the external debt of
For example, the price of the bond from the year 2020, which is the longest time limit, passed from 105 in December of the previous year to 120 at present, based on the negotiations carried out in the National Stock Market.
A 120 signifies that the bond was sold in the secondary market (where the values are negotiated for second or more times) in a 20% more than the original value. For example, if the bond was of $100, it was traded in the secondary market with a value of $120.
The recoveries of the last months are signs of economic improvement, according to the president of the Central Bank, Francisco de Paula Gutiérrez.
José Rafael Gutiérrez, manager of the National Stock Exchange, explained that the margin (spread) between the performances of the bonds of Costa Rican external debt and the Treasury notes of the U.S., considered by analysts to be the safest around, has diminished.
In the last three months, the spread of the 2020 bond descended 116 basis points (100 basis points correspond to a percentage point in the rates), according to information supplied by Gutiérrez, taken from the service UBS – Bloomberg.
Just last Friday the bond of external debt that expires in the year 2020, was quoted in the international market with 123,50%, with a spread of 355 basis points on the treasury notes, according to Gutiérrez.
As the investors trust more in the economy of a country they are willing to pay more by their bonds or to receive a smaller performance.
The increase in the price of the bonds and the reduction in the spread is also a tendency that other Latin-American countries live.
For example, in the last three months the spread of the bond of
No comments:
Post a Comment