Chile Eyes Debt Sale as Dollar-Bond Spreads Tighten 24 Basis Points

1 articles · Updated · Bloomberg · Jul 13

Chile has opened a favorable window to issue debt abroad as the premium on its dollar bonds over US Treasuries narrowed to 82 basis points, near levels last seen in 2007.
That opportunity has emerged even as investors look past mounting risks, including an escalation in the Middle East conflict, domestic debt strains and a stagnating economy.
Credit-default swap costs have also fallen below where they stood before US airstrikes on Iran, reinforcing demand for Chilean sovereign risk.
The setup gives Santiago room to tap international markets on unusually cheap terms despite a weaker economic backdrop at home.