Lebanon's Bonds Enter Danger Zone as Budget Crisis Drags On - Bloomberg

Lebanon's Bonds Enter Danger Zone as Budget Crisis Drags On - Bloomberg:

Lebanon’s Eurobonds have entered distressed territory as a budget delay and rising political tension in the region complicate efforts to tackle the nation’s fiscal crisis. 


The average extra yield investors demand to hold the Arab nation’s debt over U.S. Treasuries climbed to a 10-year high of 946 basis points this week. Among emerging markets not in default, only Zambia and Argentina have wider spreads, according to a Bloomberg Barclays index.

Some of Lebanon’s dollar securities, including those maturing in 2022 and 2023, already have spreads above 1,000 basis points.