spot_imgspot_imgspot_img

El Salvador’s Bitcoin Bonds are Becoming Attractive for Financial Giants

  • The recent bond rally in El Salvador has become too profitable to ignore for financial giants such as JPMorgan, Eaton, and PGIM.
  • Notable names like JPMorgan Chase & Co, Eaton Vance, and PGIM Fixed Income have recommended or purchased these bonds, expressing their confidence in the continuation of the upward trend.
  • El Salvador’s President Nayib Bukele took a big gamble by making Bitcoin the country’s official currency in 2021. He also issued Bitcoin bonds, which have not yet gained strong acceptance.

El Salvador’s remarkable Bitcoin bonds caught the attention of financial giants; $800 million worth of bonds were successfully repaid.

El Salvador’s Bitcoin Bonds Attract Attention

el-salvador-bitcoin

A few years ago, the Latin American country El Salvador faced negative comments from top financial giants questioning the country’s financial stability when it adopted Bitcoin.

However, the recent bond rally in El Salvador has become too profitable to ignore for financial giants such as JPMorgan, Eaton, and PGIM. With an impressive 70% return, El Salvador’s dollar bonds have been one of the best-performing among emerging markets.

Notable names like JPMorgan Chase & Co, Eaton Vance, and PGIM Fixed Income have recommended or purchased these bonds, expressing their confidence in the continuation of the upward trend. Focusing on El Salvador’s debt, JPMorgan research strategists Ben Ramsey, Nishant Poojary, and Gorka Lalaguna wrote:

“While we may have missed a significant portion, we still believe there is value in El Salvador’s curve. This credit has the potential to perform better.”

El Salvador’s President Nayib Bukele took a big gamble by making Bitcoin the country’s official currency in 2021. He also issued Bitcoin bonds, which have not yet gained strong acceptance. Following this, many major players considered the country’s bond market fragile.

Bukele alleviated concerns about the bond market by organizing two debt buybacks. He also hired an advisor who is a former International Monetary Fund veteran and successfully repaid $800 million worth of bonds.

Demand for El Salvador Bonds is Increasing

The premium investors demand to hold El Salvador government bonds compared to similar US Treasury bonds decreased by nearly 50% last year. Bonds maturing in 2035 and beyond are trading 10 basis points below the distress threshold.

This performance of the country’s bonds stands in contrast to the average return of 6.6% seen in a reference index for emerging markets. In addition to JPMorgan, Eaton Vance, and PGIM, Lord Abbett & Co LLC, Neuberger Berman Group LLC, and UBS Group AG have also added the bonds to their portfolios since April, according to data collected by Bloomberg.

Mila Skulkina, a portfolio manager at Lord Abbett, said, “El Salvador has benefited from conscious and forward-looking balance sheet management, a debt buyback in the second half of 2022, and a significant pension reform.”

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news

spot_imgspot_imgspot_imgspot_img

Latest News

Can Dogecoin Price Exceed $1? Massive DOGE Forecast from Renowned Analyst!

Dogecoin price experienced approximately a 2% decline in the last 24 hours: Will there be a rise by April? Analyst Martinez revealed!

Fed Agenda in the Bitcoin Market: According to Bianco, Interest Rates Won’t Be Lowered Before This Date!

What will the Federal Reserve do in its next move? According to Bianco's research, there may not be an interest rate cut before September!

Bitcoin and Altcoin Investment Products Witness $5.7 Billion Inflow!

Bitcoin and cryptocurrency investment products recorded a massive influx of funds, with increasing demand for Spot Bitcoin ETFs leading the way!

MicroStrategy Acquires 3,000 Bitcoin: Latest Status of the Company’s Assets!

Michael Saylor announced that MicroStrategy company purchased Bitcoin. The company's total assets exceeded 190K BTC.

Historic $1.3 Billion Bitcoin Transaction Sparks Debate on Crypto Valuation

A recent colossal Bitcoin transaction has reignited discussions about Bitcoin's valuation, comparing historical trades and pondering the future of currencies in the digital age.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Ethereum Breaks $3K as Rally Continues: What’s Next for ETH?

This article dives into Ethereum's recent surge past $3,000, analyzing the technical indicators and market dynamics driving its ascent and future prospects.

Will Bitcoin Rise To $50,000? Current BTC Analysis

Bitcoin is trading at $48,400 and may rise to $50,777 if it closes above $48,200. However, caution is advised in the range of $50,777 - $52,000. Corrections are common in the crypto market, so careful consideration is necessary before spot investments.

Where is the Solana Rise Target? Current SOL Analysis!

Solana is trading near the $108 resistance on the 8-hour chart, with a potential target of $111.84 if it surpasses this level. However, caution is advised in the $111.84 - $117.20 resistance range on the 6-hour timeframe.

Medium Term Ethereum Technical Analysis! What Awaits Its Investors?

When examining the medium-term technical chart of Ethereum, strong buying pressure is observed, pushing the price up from the $2139 support to the $2350 region. However, for the price to sustain its upward movement, it needs to surpass the $2407 resistance.

Can Bitcoin Fall To $35,000 Levels? Current BTC Analysis

When examining Bitcoin's 5-day technical chart, the analysis from January 18 is ongoing, indicating a continued downward movement from the $48,189 level. Bitcoin needs to close 5-day candles above the $44,200 resistance to gain momentum for an upward trend. 
Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
spot_imgspot_imgspot_imgspot_img

Can Dogecoin Price Exceed $1? Massive DOGE Forecast from Renowned Analyst!

Dogecoin price experienced approximately a 2% decline in the last 24 hours: Will there be a rise by April? Analyst Martinez revealed!

Fed Agenda in the Bitcoin Market: According to Bianco, Interest Rates Won’t Be Lowered Before This Date!

What will the Federal Reserve do in its next move? According to Bianco's research, there may not be an interest rate cut before September!

Bitcoin and Altcoin Investment Products Witness $5.7 Billion Inflow!

Bitcoin and cryptocurrency investment products recorded a massive influx of funds, with increasing demand for Spot Bitcoin ETFs leading the way!