As Argentine assets endured a torrid Monday on the back of Mauricio Macri’s poor performance at the weekend’s primary, analysts warned that the peso’s harsh devaluation would push public debt — which is largely in hard currency — up to perilous levels. This could accelerate a sovereign default, said Capital Economics.
Argentina’s nearest international bond maturity is a $4.5bn dollar bond due in 2021 with a 6.875% coupon. These notes slipped more than 20 points on Monday to a cash price of 66 and a yield of more than 35%, though this was in line with movements across the
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