Bear Tips Colombia Versus Panama

Bear Stearns has tipped Colombia’s 33 bonds over Panama’s 2034. “So far this month, Panama has outperformed the market by 104bp on a total-return basis,” the shop says. “Panama has historically traded 20bp wide of Brazil (1-year average) and is currently trading 18bp through Brazil.” Meanwhile, Colombia, rated by Bear as outperform, has sold off in the wake of recent political turmoil with yields on Colombia 2033s rising by nearly 40bp this month. “We consider this an ideal opportunity to add exposure to Colombia and take profits in Panama,” says Bear.