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Caution against sovereign debt returned and country risk attracted 700 basis points



The bonuses dollars last week before a profit after growth since the beginning of this year.

Profitability, which is reversing prices, stabilized. T. emissions in dollarsboth Argentina and New York law, a ranging from 10 to 11.7 percent per year in the middle of the curve.

The Country risk JP Morgan, who measures the US bond spread with his new partners, arrived in the afternoon 701 basis points For Argentina, to abandon the minimum of 2019, January 24, 664, last year. An indicator was found for the closure of operations 688 unitsUS Federal Reserve President Jerome Powell, will say that the North American Central Bank be patient when it comes to increasing the cost of money this year, given the growing uncertainty about the US economic outlook.

Although the risk of the Argentine country in 2019 takes more than 100 basis points, find the last wheels strength continue to return

"This is what goes beyond existence factors that are favorable developing countries, and thus in Argentina, as well as the names of Argentina more interesting profits compared to other countries uncertainty about the election Presidential Elections are back in October, ”said the report Researchers for traders.

Outside rate 2,695% US 10-year bonds remain Argentina public debt international markets where it should be offered yield is almost 10% per year dollars to convince investment funds.

Still the high JP Morgan index in Argentina is a fall national bond prices appearaffected by debt sustainability approaches under. , current account and fiscal dynamics, two weak edges when there is a debate on the domestic economy.

Experts no Balanz Capital they said that " inflation, especially in countries like Argentina factor trajectory changes. , country risk reduction in the long term, which is usually underestimated. "

"We believe that the structural decline in inflation rates is a necessary condition not only to reduce local capital costs but also to allow new countries increase debt in local currency when calculating total gross debt, they pointed to Balanz.

Unlike Argentina, which national debt in local currency does not exceed 20% of the total amount Turkey it has 59% of its liabilities in lira; Brazil is 78% of its gross domestic product in real and average GDP. , Mexico it has 63.8% of its total public debt in the Mexican pesos.

"By contrast Argentina's debt in dollars is 83% of total public debt, which means a potentially unpleasant catalyst on chronic dependence on devaluation with low export to GDP ratios, ”stressed Balanz's analysis.


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