Investors Continue to Back Peru

Investors are continuing to put their money on Peru as the country’s dollar-denominated bonds outperform other emerging market debt including that of Mexico. Peru’s bonds returned 9.5% to September versus 7.5% on comparable Mexican and other emerging market sovereign bonds. Low inflation, two years of growth and buoyant exports have convinced investors to back Peru. Meanwhile, a recent poll has shown that President Alejandro Toledo has recovered some points in his public approval rating for the first time since the political crisis last month.