Per the Financial Times today: Ecuador’s bonds fell sharply after the decision to default on $3.86bn of foreign debt on Friday, with its main benchmark bond yield jumping more than 100 basis points since Friday to trade at about 60 per cent. The decision of Rafael Correa, Ecuador’s radical leftist president, could return to haunt the country and others in the region as investors subsequently demand higher yields to buy their bonds. Although Ecuador attracts only investors willing to take big risks in exchange for high yields, even the most risk-hungry funds may think twice now. The country’s credit default swap prices, a form of insurance against debt defaults, are trading at more than 4,000 basis points, one of the highest sovereign prices in the world. The failure to pay a $30.6 million interest payment on its 2012 global bonds, despite the fact ...