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Bolivian President Evo Morales.
Bolivian President Evo Morales.
(DAVID MERCADO/REUTERS)

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Bolivian bonds should carry a health warning

Buyers have been too soft on Bolivia’s first international bond issue in 90 years. The Andean nation’s $500-million (U.S.) issue yields just under 5 per cent. That’s less than half what investors charge richer Venezuela on similar debt. But they may be putting too much faith in President Evo Morales. They’d better hope the Bolivian President respects debt obligations more than private property.