Central America Business - Brazil

El Salvador’s five-year credit default swap (CDS) exploded

By Richard Mann · June 20, 2022 · 1 min read

RIO DE JANEIRO, BRAZIL – El Salvador’s sovereign credit is multiple times worse than it was, according to Bloomberg data. Credit default swaps measure the cost of insuring against a country defaulting on borrowing repayments at any time in a specified period.

The nation’s CDS is second highest in Latin America, behind Argentina.

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While IMF, World Bank & traditional market analysts were quick to call out El Salvador’s supposedly suicidal decision to adopt bitcoin as legal tender and invest in the top cryptocurrency as the reason for the spike in the country’s CDS, the recent U.S. Federal Reserve’s hawkish turn also appears to have played a considerable role.

CDS appears to be spiking because of higher interest rates being priced in more and more.

Salvador’s CDS is telling you default is expected at some point.

Live Market IntelligenceBrazil — Live Market BoardInside: market breadth, the sector heatmap, currencies & rates, the Latin America scoreboard and the full instrument board.

Rio Times · Live Market Intelligence

Brazil — Live Market Board

B3 · São Paulo
Jul 22, 2026 · 14:01

Ibovespa · benchmark

176,140.57
+1.62%

L 173,328day rangeH 176,807

+31.65% over 12 months

Market breadth · 15 names

100% advancing

15 ▲ advancing0 declining ▼

Currencies, rates & key inputs

USD / BRL

5.06

-0.30%

EUR / BRL

5.77

-0.88%

Selic rate

14.25%

·

Brent crude

93.30

+2.52%

Iron ore

161.91

·

Sector heatmap · average move today

Industrials

+5.37%

WEGE3, RENT3

Mining

+3.50%

VALE3, CSNA3, GGBR4

Energy

+2.00%

PETR4, PRIO3

Utilities

+1.57%

ENEV3

Consumer Staples

+1.46%

ABEV3

Financials

+1.12%

ITUB4, BBDC4, BBAS3, B3SA3

Materials

+0.96%

SUZB3

Consumer Disc.

+0.92%

AZZA3

Latin America scoreboard

IndexLastTodayStrength

IbovespaBrazil
176,140.57
+1.62%

S&P/BMV IPCMexico
66,709.60
+0.88%

S&P IPSAChile
10,974.16
+0.18%

S&P MERVALArgentina
3,343,345
+1.87%

MSCI COLCAPColombia
2,312.45
+0.48%

BVL S&P PerúPeru
57,575.02
—

Full instrument board

Instrument	Last	Change	YoY	Prev.	High	Low	Volume
IBOV	176,140.57	+1.62%	+31.65%	173,325.65	176,807	173,328	—
USD/BRL	5.06	-0.30%	-9.13%	5.07	5.08	5.05	—
SELIC	14.25%		—	—	—	—	—
PETR4	42.47	+1.94%	+35.50%	41.66	42.74	41.97	23,089,400
VALE3	74.62	+3.29%	+29.84%	72.24	74.88	73.34	9,626,700
ITUB4	42.56	+0.07%	+25.22%	42.53	42.98	42.27	8,357,100
BBDC4	18.75	+1.08%	+19.96%	18.55	18.84	18.50	15,124,200
BBAS3	20.90	+0.10%	+5.18%	20.88	21.05	20.72	9,234,200
B3SA3	15.66	+3.23%	+19.82%	15.17	15.67	15.21	22,452,100
ABEV3	16.03	+1.46%	+19.63%	15.80	16.14	15.74	6,700,600
WEGE3	46.61	+9.75%	+12.68%	42.47	47.06	44.80	20,485,900
PRIO3	59.37	+2.05%	+39.43%	58.18	59.70	58.66	2,377,500
SUZB3	42.03	+0.96%	-17.93%	41.63	42.69	41.65	1,920,100
RENT3	36.91	+0.99%	+3.16%	36.55	37.22	36.42	6,454,300
AZZA3	17.64	+0.92%	-50.99%	17.48	17.68	17.06	830,000
CSNA3	5.35	+5.73%	-37.62%	5.06	5.37	5.09	6,745,800
GGBR4	23.84	+1.49%	+40.92%	23.49	24.05	23.46	2,278,100
ENEV3	25.82	+1.57%	+87.25%	25.42	25.84	25.32	2,068,100

Largest moves today

WEGE3
46.61
+9.75%

CSNA3
5.35
+5.73%

VALE3
74.62
+3.29%

B3SA3
15.66
+3.23%

PRIO3
59.37
+2.05%

PETR4
42.47
+1.94%

IBOV
176,140.57
+1.62%

ENEV3
25.82
+1.57%

The session read

The Ibovespa rose 1.62%, with breadth positive — 15 of 15 names higher. Industrials led, while Consumer Disc. lagged.

From The Rio Times

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El Salvador’s five-year credit default swap (CDS) exploded

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