BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X
HOME > OUR THINKING > Banking & Financial Services > RESEARCH

CDS Volatility Continues in Latin America and the Caribbean

Sovereign CDS prices in several Latin American and Caribbean countries have moved lower in the first few months of 2016, but are still running markedly higher compared to year-ago levels, data from SNL Financial shows.

Chile's CDS prices have seen among the biggest declines in the year-to-date, falling 19.47% so far. Over the past 12 months, however, CDS prices in the country are still up 22.45%.

Brazil CDS prices also have seen a notable decline in the year to date, falling 15.89% so far. Over the past year, CDS prices in Brazil are still up 78.91%.

CDS prices in Peru, Panama, Uruguay and Venezuela have also moved lower in the year-to-date period.

Among the anomalies in the year-to-date period is Costa Rica, where CDS prices have shot 20.25% higher, while Guatemala, El Salvador, Colombia and Mexico saw far less dramatic increases in their CDS prices.

Latin American and the Caribbean sovereign CDS performance

The year-to-date pricing data shows the continued volatility in CDS pricing that many countries in the region have seen over the past year, with the net result being a general increase in CDS prices across the region in the last 12 months.

Latin American sovereign CDS price performance from 2011 to 2016

In Venezuela, specifically, spikes in pricing data have become far more regular — and more pronounced — in recent months.

Venezuela sovereign CDS price performance from 2011 to 2016

sovereign-ratings-of-select-countries-within-the-latin-america-and-caribbean-region-since-2012