Colombian’s sovereign bond spread widens by 20%

Colombia’s dollar bonds are being priced as though they were already junk as investors bet that the government will fail to raise taxes enough for the country to cling onto its investment-grade credit rating. With investors pricing in a high likelihood of a ratings downgrade, the country’s average sovereign bond spread has widened by 20 basis points this month, to 2.31 percentage points over U.S. Treasuries, according to data compiled by JPMorgan.

Source: Yahoo Finance