* Argentina’s bonds have climbed following the 14 November mid-term legislative elections,
which delivered a defeat for the government led by President
Alberto Fernández. News agency
Bloomberg reported that US dollar-denominated bonds due in 2035 rose as much as 1 cent to about 31.2 cents on the dollar - their biggest gain since the poor performance of the ruling centre-left coalition, Frente de Todos, in the compulsory open primary elections (Paso)
held on 12 September. Meanwhile the S&P Merval index for the Buenos Aires stock exchange in Argentina was down by 2% while Argentina’s country risk spread, measured by investment bank JPMorgan Chase, fell 3.7% to 1,683 basis points. According to a research note circulated in the media by
Alberto Ramos, an analyst at investment bank Goldman Sachs, “
The market is likely to take a net positive view of the election results. A more market-friendly composition of Congress could lead to more effective checks and balances and ultimately a policy regime shift in 2023…But there is also the risk of more populist near-term policies.”
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