Updated
Updated · Bloomberg · Jun 3
Senegal’s 2031 Dollar Bond Sinks to 54 Cents as Political Crisis Fuels Default Fears
Updated
Updated · Bloomberg · Jun 3

Senegal’s 2031 Dollar Bond Sinks to 54 Cents as Political Crisis Fuels Default Fears

2 articles · Updated · Bloomberg · Jun 3

Summary

  • Senegal’s 2031 dollar bond traded around 54 cents on the dollar Tuesday, down from a mid-February peak of 68 cents as the country’s political crisis deepened.
  • That slide has turned Senegal from a top emerging-markets performer into one of the worst, with its three dollar notes all falling heavily.
  • Investors are now sitting on a 2.5% loss this year on Senegal’s dollar bonds, while a broader emerging-market dollar-bond index has gained 1.5%.
  • The widening gap underscores how political turmoil in Senegal is increasingly being priced as a credit risk, with default fears rising.

Insights

With its debt secretly doubled, are opaque bank deals pushing Senegal into an inevitable default?
Senegal's president just fired his mentor. Is their power struggle about to destabilize West Africa?