Concerns about a potential credit rating downgrade, the withdrawal of the fiscal bill, and the recent wave of street protests have put Colombian USD bonds under pressure, leading them not only to underperform LatAm IG peers, but also to trade at levels similar to LatAm BB+ credits, which leads us to believe that some of the risks are already priced in. For example, in yield terms, Colombia 31s trades at a higher level than Paraguay 31s, but we think fundamentals favour Colombia, and in a worst-case scenario of a downgrade, Colombian USD bonds should still trade at better levels than other BB+ credits. We recommend investors position themselves in the Colombia 10Y sector (COLOM 31s and 32s) which appear to better price in some of the risks and provide more downside protection versus the longer duration bonds.