Hopefully Macriwill’s populist foes aren’t the Perons (Juan and Eva) … or a reasonable copy!
(Bloomberg) — Argentine markets tumbled for a second day as the chance of a potential default rose over 60 percent on doubts that President Mauricio Macriwill be able to fend off his populist foes and win re-election this year.
Yields on the government’s short-term dollar bonds are now near 20 percent, landing them in rare territory that analysts typically consider distressed, while the peso has sunk to a record low of 46.2 per dollar. It all marks a sudden collapse for a country that had seemingly weathered a market rout last year when it scored a $56 billion lifeline from the International Monetary Fund.
Well if you think 20% sovereign yield is bad, try Argentina’s sovereign yield denominated in the Argentina Peso … 70% for a 1 year maturity!
Argentina’s credit default swap (USD Sr) now exceed 1,700 for both 1 and 2 years.
Yes, the Populist power couple from Argentina’s past .. Juan and Eva Peron, graced the cover of Time Magazine.