Lebanon’s Bond Yields Surpass 200% as Default Risk Rises

The video discusses Lebanon's financial situation, focusing on a Eurobond maturing on March 9th. The bond's yield has reached 200%, raising concerns about Lebanon's ability to avoid default. The central bank aims to swap the bond for longer-dated notes, but rating agencies view this as a distressed exchange, potentially leading to a downgrade. Investor interest is low due to Lebanon's precarious financial position and lack of a stable government. The video explores the implications of a potential default, including the impact on Lebanon's reserves and the prioritization of creditors over citizens' needs.

What is the yield on Lebanon's next maturing Eurobond due on March 9th?

• 200%

• 100%

• 150%

• 250%

What action did Lebanon's central bank governor suggest regarding the $1.2 billion bond?

• Repay it immediately

• Swap it for longer-dated notes

• Sell it to foreign investors

• Convert it to local currency

Why are investors hesitant to invest in Lebanese debt despite high yields?

• Low interest rates globally

• Lack of government stability

• High inflation rates

• Strong competition from other bonds

What is a potential consequence of Lebanon being downgraded to selective default?

• No impact on bond yields

• Acceleration across all its bonds

• Immediate repayment of all bonds

• No proper default like Venezuela

What is the debate regarding Lebanon's use of its reserves?

• Whether to pay off all debts immediately

• Whether to increase foreign exchange reserves

• Whether to prioritize creditors or essential imports

• Whether to invest in infrastructure