JP Morgan Downgrades Panama Bonds Amid Trump Threats

JP Morgan has downgraded its recommendation on Panama's bonds due to heightened threats from Donald Trump regarding the Panama Canal. The uncertainty raises market sensitivity.


JP Morgan Downgrades Panama Bonds Amid Trump Threats

The Republic of Panama is experiencing turbulence in the international market, as JP Morgan, an investment bank from the United States, has lowered its recommendation on Panamanian bonds. This decision comes after Donald Trump intensified his threats to reclaim the Panama Canal.

The media outlet 'El Economista' highlights that Panama's bonds have faced challenges since Trump launched criticisms against the country. However, JP Morgan analysts have observed an increase in bets since he took office last Monday.

The analysts warn about the uncertainty surrounding the situation, noting that although both countries could resolve the conflict, the rhetoric that could arise in the process will make the markets more sensitive to associated risks.

In the analysts' words, 'The potential noise associated with the path that could lead us there should make the markets increasingly sensitive to headline risks.'