Nayib Bukele just posted this thread about how El Salvador plans to buy back their own debt.
Right now El Salvador’s bonds are among the worst performing sovereign bonds, and are therefore trading at a steep discount.
If El Salvador has the funds to buy this debt back, they can do it at market price and save a lot of money.
Skeptics might say they could be bluffing to raise the price of their existing debt, and make it more likely they can raise more money in the future at lower rates.
Looks like El Salvador’s 7.75% Coupon Bond has really spiked, up 15% in the last week.
A few questions for SN users:
- Where are they going to get the funds to do this?
- Are Volcano bonds still a thing?
- Is El Salvador’s economic situation as dire as mainstream press & bond markets believe it is?