El Salvador Debt Climbs on Post-Fed Risk Mood, Fiscal Optimism

El Salvador’s dollar bonds jumped Thursday — becoming the best performing credit in emerging markets — as investors turned risk-on after the Federal Reserve slashed interest rates and President Nayib Bukele pledged fiscal austerity.

• Sovereign notes climbed across the curve, with those due in 2035 gaining gaining 2.8 cents on the dollar to 85 cents, according to indicative pricing data by Bloomberg
• Investors are adding risk to high-yield credits after the Fed cut, and El Salvador is the beneficiary after having lagged Ecuador and Argentina this year, according to Siobhan Morden, managing director for Latin America fixed income ...