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Argentina default concerns grow after market crash
Source: Reuters
BUSINESS NEWS AUGUST 13, 2019 / 9:48 AM / UPDATED 3 HOURS AGO
Argentina default concerns grow after market crash
Tom Arnold, Marc Jones
3 MIN READ
LONDON (Reuters) - Concerns about Argentina adding to its long list of sovereign defaults swirled on Tuesday, as investors continued to digest the heavy defeat of pro-reform President Mauricio Macri in the country’s primary elections at the weekend.
Credit default swap prices from data provider IHS Markit showed five-year credit default swaps (CDS) marked at 2,116 basis points, up from what was already a five-year high of 1,994 bps the previous day. At those levels, the probability of a default within five years is estimated to be between 70% and 75%.
Argentina last defaulted on its debt in 2001, an event which sparked years of recessions and economic crises.
Bank of America Merrill Lynch’s Claudio Irigoyen, who used to be the chief economist at Argentina’s central bank, cautioned of a worsening outlook as well.
-snip-
Argentina default concerns grow after market crash
Tom Arnold, Marc Jones
3 MIN READ
LONDON (Reuters) - Concerns about Argentina adding to its long list of sovereign defaults swirled on Tuesday, as investors continued to digest the heavy defeat of pro-reform President Mauricio Macri in the country’s primary elections at the weekend.
Credit default swap prices from data provider IHS Markit showed five-year credit default swaps (CDS) marked at 2,116 basis points, up from what was already a five-year high of 1,994 bps the previous day. At those levels, the probability of a default within five years is estimated to be between 70% and 75%.
Argentina last defaulted on its debt in 2001, an event which sparked years of recessions and economic crises.
Bank of America Merrill Lynch’s Claudio Irigoyen, who used to be the chief economist at Argentina’s central bank, cautioned of a worsening outlook as well.
-snip-
Read more: https://www.reuters.com/article/us-argentina-markets-cds/argentina-default-concerns-grow-after-market-crash-idUSKCN1V31BI