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Ecuador Bonds Exit Distressed Ranks After Election-Day Surprise

LATAM
  • The recently restructured bonds emerged from distressed territory after Guillermo Lasso was elected Sunday, stoked by investor optimism that the new government will shore up the economy and stick to fiscal austerity measures needed for a program with the International Monetary Fund. The problem is that he will face a fragmented congress, which could make governing a challenge. (BBG)
    • "Lasso is clearly a step in the right direction both for Ecuador and its relationship with debt markets," said Victoria Faynbloch, a strategist at TPCG Valores, which recommended turning overweight on Ecuador bonds on Monday.

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