Country risk closed above 1000 points for the first time in the Macri era

The tranquility of the May exchange rate was not enough for other financial indicators to start being more favorable for Argentina. Country risk, for example, went bankrupt on Monday 1000 points and closed at this level for the first time in the last five years.

This index, developed by JP Morgan, indicates in practical terms what is the additional cost why should the country pay obtain financing abroad, compared to the United States. In this way, Argentina should issue a debt at an interest rate of 12,20% per year.

But in addition, reflecting the persistence of these country risk levels is that investor confidence in Argentine badets remains weak. On Monday, for example, bonds and shares they scored falls in almost all cases.

"At a global level, the scenario whereby capital is hiding in bonds and safe currencies has changed, because of the difficulty in anticipating the outcome of the US-China conflict and the fear of a slowdown important to global growth, "he said. the Foundation for the Mediterranean in a report.

He added that "at the local level, there is a reflection of this aggravation of international conditionsbut, above all, greater uncertainty for the day after December 10 (when the elected president takes office). "

By the end of April, the country risk had also exceeded 1,000 points, but with the pbadage of time, it dropped to 960 points. The tranquility of the exchange rate in May did not allow this financial indicator to reach 900 points, but this downward trend was short-lived.

The final number with which the country may close –1013 points– this is the maximum peak since February 2014, as published by the press agency Reuters. The trading day earlier this week included bond and equity sales by investors. In the case of sovereign bonds, the decline averaged 0.7%. The newspapers of Argentine companies listed on Wall Street have lost up to 4% of their value.

Most badysts agree that the proximity of the elections and the possibility that the ruling party does not retain the leadership of the executive power keep one prudence between investment funds.

"I think the political factor weighs on this variable, today, the market punishes the links sovereign because it reflects on a possible change in the rules of the game. The dollar was not seen because steps were taken to stabilize it, "said Mariela Díaz Romero, an economist at Econviews consulting firm.

For its part, Invecq consultant Santiago Bulat said that "bond yields indicate that the level of uncertainty in the market is still high and Attention with Argentina"And this is reflected in the fact that" the demand is in the short bonds that expire before the end of the management of Mauricio Macri ".