Argentina CDS at five-year highs in wake of election shock
LONDON, Aug 13 (Reuters) – The cost of insuring exposure to Argentina’s sovereign debt remained at a five-year high on Tuesday, as investors continued to digest the chastening defeat of President Mauricio Macri in the country’s weekend primary elections.
Argentine 5-year credit default swaps (CDS) were marked at 1,994 basis points, the same level as they had ended at on Monday and almost double Friday’s close of 1,017 bps, according to data from IHS Markit.
Monday’s market mauling had seen the peso collapse 15%, equities crumble 48% in dollar terms — the second biggest one-day slump anywhere since 1950 — while the bond market saw widespread crashes of 20 cents on the dollar. (Reporting by Tom Arnold; editing by Marc Jones)
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