Dissecting the intersection of
Economics, Geopolitics & Financial Markets
Colombia & Romania: Two very distinct but similar-rated countries, with bond spreads wide of “fair-value”. Why? Political noise fatigue & budget deficit dynamics (both 6%+ of GDP) that blur the ratings outlook. Recent years have shown that this sort of market action is not restricted to Emerging Markets. Indeed, Developed Market nations often face considerably higher debt/GDP ratios than their EM peers.
