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Investors Look Past Romania Risk to Pocket Junk-Like Yields

Source: Bloomberg

Sovereign Debt & RatingsCredit & Bond MarketsElections & Domestic PoliticsInterest Rates & YieldsEmerging Markets

Romanian sovereign bonds are being traded as the EU's only junk-rated government debt, reflecting elevated political and credit risk amid a prolonged crisis in Bucharest. High yields are nevertheless attracting investors, creating demand for the country’s debt despite its sub-investment-grade status.

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