Calm returns to Lat. Am. markets

Following the turmoil experienced during the first few weeks of this year, financial markets across much of Latin America have stabilised over the past month. In most countries, bond yields have fallen and currencies have strengthened. And while the performance of equity markets has been more mixed, in several countries stock markets have rebounded. Venezuela is an exception to all of this. Here, growing political unrest against a backdrop of an already fragile economy has stoked capital flight and led to a further rise in bond yields and CDS premia.