Wall Street strikes Argentine equities and bonds again

Argentine badets traded on the New York markets faced another dramatic session Monday, with declines of up to 13.6%, amid growing fears of another potential default.

Wall Street investors have largely abandoned their positions in bonds and shares of Argentine companies, after the bad omens made last Friday by two rating agencies.

The new crisis of confidence also resulted in a new rise in country risk, which rose by 13.1% to reach 1,875 basis points, very close to the peaks reached in 2008 during the debacle. financial institution.

From the beginning, bonds and securities of Argentine shares traded on New York squares, technically called ADR, fell.

The ADRs of the Galicia group lost 13.6%; those of Banco Macro, 13.5%; those of Banco Francés, 12.7%; those of Banco Supervielle, 12.5%; and those of Edenor, 10.8%, among others.

At the same time, at the fixed income level, Argentine bonds accumulated falls of up to 8.43%, as was the case for the $ 2024 Bonar.

The mbadive skid they faced today on Wall Street was the first reaction of investors against the decline in the credit rating of Argentina by agencies Fitch Rating and Standard & Poor's.

And everything suggests that the trend will move tomorrow in the local square, which did not work today for the commemoration of the death of General San Martin.

The heightened fear about Argentina's future has also been reflected in the price of default risk insurance (CDS, according to its acronym in English).

The cost of the five-year Argentine debt guarantee has increased by more than 500 basis points since Friday's closing. In addition, as indicated by the operators, the amount needed to access the receipt was increased: it became $ 5.2 million in advance to secure a $ 10 million debt.

And according to IHS Markit's calculations, the new CDS levels account for 77% of a sovereign debt default over the next five years.