Argentina’s Short-term Dollar Bonds Near 20% (Peso-denominated Bonds At 70%!), CDS Sr USD Exceeds 1,700 As Populist Foes Gain Strength

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.

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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!

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Argentina’s credit default swap (USD Sr) now exceed 1,700 for both 1 and 2 years.

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The Argentina Peso? Devaluing faster than Madonna’s film career (she played Eva Peron in the Peron-flavored musical).

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Yes, the Populist power couple from Argentina’s past .. Juan and Eva Peron, graced the cover of Time Magazine.

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