the Argentine country risk exceeded 3,600 basis points

The indicator reached 3,602 basis points in the early hours of the morning, some 137 points above the close on Monday

The country risk of Argentina advanced this Tuesday by 135 basis points and was located around 3,602 units. In this way, in the first three months of the year it already doubled its value in relation to 2019 when it had closed in 1770.

After a Monday where it shot up to its highest levels since 2005, the country risk started the day on the rise again. The indicator reached 3,602 basis points during the first hours of the morning, some 137 points above the close on Monday.

According to the consulting firm Delphos Investment, “many of the Argentine bond-holding funds that maintained a constructive position began to see an unprecedented withdrawal in their funds by the quotas.”

Throughout the month, Argentine bonds accumulated sharp falls throughout the month, largely accompanying the international context, but also reflecting the uncertainty regarding debt restructuring, pending the first official offer.

“We believe that part of the fall reflects the perception by investors of a lower probability that the Government will reach an agreement with creditors. It should be noted that this greater probability leads to the different characteristics of each bond, for example, maturity , coupon, become less relevant, given that in a default scenario all the securities are worth the same, “said Balanz.

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