EM sell-off after Argentina poll result but primary market optimism abounds

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By Lewis McLellan
12 Aug 2019

The rout of the incumbent president Mauricio Macri in the first round of the Argentina elections has investors worried. Argentina’s debt, and that of other 'vulnerable' credits, suffered a huge sell-off early on Monday. But bankers believe that it was not so bad that the primary market will not reopen in September.

“It’s an idiosyncratic risk,” said an emerging markets syndicate banker. “However, we’re seeing reactions in the paper of some of the more vulnerable economies in EM, with some spread widening taking place.”

Higher rated sovereign appears to be unaffected by the election result, but Turkey’s external debt has ...

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