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Country risk continues to rise and reaches a new maximum since the debt swap

The punishment continues for Argentine bonds, which fell again and generated a rise in country risk. The indicator marks a new maximum level, which was not seen since the debt swap that Argentina closed in 2020.

This Wednesday, the country risk adds 19 units and reaches 1814 points. Since STEP 2021, the index produced by JP Morgan has reached almost 280 points. The strong rise is explained by the fall in the price of bonds in dollars. Given that the price of a security is inversely proportional to its rate, the drop in its value on the screens triggers returns and, with them, drives country risk.

Read also: Market in the red: large Argentine companies are worth US $ 2.2 billion less after the elections

What does country risk measure? The difference between rates of the sovereign bonds of each nation with respect to the yield that pays a security of the United States, considered free of risk.

Country risk continues to rise and reaches a new maximum since the debt swap

An indicator in the area of ​​1800 points indicates that if the National State wanted to go out and issue debt in the international market, it would have to pay a rate higher than 18%.

How much Argentine bonds and stocks fell

The bonds Argentines in dollars moderated the falls on the end of the wheel. At the close, the title to 2029 (AL29D) showed the major low, 0.5%.

Argentine stocks listed on Wall Street continue to show a majority of losses.  (Photo: Brendan McDermid / Reuters).
Argentine stocks listed on Wall Street continue to show a majority of losses. (Photo: Brendan McDermid / Reuters).

On the side of the Actions, the movements were also downward. At the local level, the papers presented a majority of red numbers and the S&P Merval index, leader of the Buenos Aires market, fell 0.3%. The greatest losses were recorded by YPF (-2.1%), Pampa Energía (-2%) and Ternium (-2%).

Read also: Debt with the IMF, inflation and wages: Martín Guzmán’s definitions before presenting the multi-year economic plan

In New York, locally sourced stocks turn red. The ADRs of Irsa Propiedades Comerciales fell 3.3%; those of Irsa lost 3.3%; and those of Transportadora de Gas del Sur yielded 3.2%.

The Economist Gustavo Ber, from the study that bears his surname, stated that he referred to the setbacks in the ADRs and highlighted “the soft spot in the papers of banks and energetic as traders continue to unload positions while accentuating caution ”.

News that is being updated.

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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