Risk to foreign investors rises slightly, but still attractive

Peru’s national risk rating rose four base points to 1.19% at the close of session, according to JPMorgan’s calculation of the EMBI+ Peru.

This represents a rise from the country’s lowest level in history of 1.07%, attained at close on April 27th this year.

The EMBI+ Peru (Emerging Markets Bond Index Plus) is measured as a function of the difference between average returns on sovereign Peruvian titles against return on US Treasury bonds. It is therefore an estimate of political risk, and the probability that a country will fail to comply with obligations to international creditors, so it is used as a measure of the “danger” facing a foreign investor.

The low level of the EMBI+ Peru will encourage foreign investors, and bring about an increase in Peru’s already impressive record of economic growth.

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