The Dominican Republic’s economic metrics seem to be improving. Investment and the tourism industry are recovering while remittances from abroad continue to increase. These key factors are supporting internal demand, construction and employment, which are reflected in the monthly economic activity indicator. Fiscal and debt burden challenges remain, but the economic recovery and fiscal discipline should help to mitigate those concerns. So far this year, Dominican Republic bonds have lagged BB-rated peers, but we believe the country’s improving economic prospects give the bonds ample room to catch up and outperform. We find the bond yields attractive at current levels, particularly the 10Y sector, and recommend adding duration along the curve.