Peru country risk closed at 0.88 percentage points up one basis point from the previous valuation, According to the EMBI + Peru that was calculated by the JP Morgan Investment Bank.
Country risk is an international indicator with which the risk of investing in a country is measured; Only the internal determinants of each country are taken. The economic, political, social, security and other characteristics are measured. The higher the risk, the worse the rating this country will have, taking it to the national level, having climbed a point disadvantages us.
The country risk measures how likely it is that the country requesting a foreign investment cannot pay the debt for which they give greater interest to the requested debt which changes according to the value of the country risk. This calculation is normally done by the JP Morgan Investment Bank. Even having risen one percentage point, Peru reported the lowest risk in the region, followed by Colombia and Mexico, having 1.69 and 1.80 respectively.
It should be noted that Peru had been lowering the value of country risk in recent years. Peru ended last year with a country risk of 1.09 and in the first quarter of 2019 with 1.48 and the end of 2018 with 1.63, so it is a trend that should continue.
EMBI + Peru measures this universal indicator based on the difference in the average yield of Peruvian sovereign securities against the performance of the US Treasury bond. In simpler words, it is measured by looking at the possible future values that Peruvian sovereign values will have and the possible values of the US treasury bond are subtracted. This result is multiplied by 100 and the indicator is resolved for each country.