After a historic day of voting for the draft of a new Constitutionwhich gave the Rejection option as the winner, the country risk takes a breath and turns back.
This Monday the five-year Credit Default Swap (CDS) of Chile – hedging instruments against the risk of default traded in dollars – operate this Monday with a drop of 0.79%, standing at 146, 639 points. In the 10-year term, the decline is 0.94% to 212,004 points.
Thus, both terms have been at their lowest level since August 18 of this year.
“Much of what happened from the social outbreak onwards and during this new government with the tax reform proposal raised the country’s risk significantly, perhaps part of that rise will fall, but we are far from going back to a situation like the one we had many years ago,” explained Andrés Vicencio, asset allocation manager and portfolio manager at LarrainVial Asset Management.
Thus, the CDS are still at high levels compared to what was seen a couple of years ago.
Specifically, since October 25, 2020, when the entry plebiscite was held, the five- and 10-year titles have experienced a rise of 155.53% and 95.36%, respectively.
