JPMorgan and other giants bullish on El Salvador's bond uptrend

Odaily Planet Daily News El Salvador's bond market has rebounded recently, and its dollar bond return rate is as high as 70%, which is the best performing bond in emerging markets. Giants including JPMorgan Chase & Co. , Eaton Vance and PGIM Fixed Income all hinted at or bought the bonds, expressing confidence that the bond's upward trajectory will continue. "While we missed a large portion of the rally, we still see value in El Salvador's (bond) curve. This credit has room to continue," wrote JPMorgan research strategists Ben Ramsey, Nishant Poojary and Gorka Lalaguna. Earlier, El Salvador's President Nayib Bukele announced that Bitcoin would become the country's official currency in 2021. He also launched Bitcoin Volcano Bonds, which have yet to gain widespread acceptance. Shortly after, several major companies downgraded the country's bond market, citing vulnerabilities. Bukele eased the worst fears in the bond market by orchestrating two debt buybacks. He also hired an adviser who had worked for the International Monetary Fund (IMF) and successfully repaid $800 million worth of bonds. (Coin Gape)