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The first failure of an investment against Cristine: the country's risk of falling and non-payment insurance



The country's risk that the metric dropped by 49 points and reached a psychological barrier of 900 points to 885 units, while the five-year arrangement in the event of a credit risk delay fell 7.33%, the most significant loss in terms of going year-on-year.

The fall of both indicators came after he knew on Saturday that Cristina Kirchner would share the formula with Albert Fernandez, who would go first, while she preferred the vice president. The news initially caused confusion, but the market was finally perceived as positive.

"The country's landfall has a direct correlation with what happened on Saturday, at the start it was rather worrying, in polls say 98% of voters will not change their voice, I have my doubts." -Fernandez is looking for Peronist's voices of good manners, with Lavagnom behind, there is an attempt to moderate discourse, "said Gustavo Neffa, director of research for merchants.

Likewise, Neff added that "everything that moderates discourse or intent to control the economy will be welcome" for the market.

The five-year credit substitution loan (CDS) is a refuge that investors are looking for before the possible unpaid bonds and in late April they went up by about 5% as a result of fears of default. government debt. However, yesterday, these CDSs recorded the biggest decline in the year.

The two-year CDS Argentina did not lag behind and showed the biggest drop in two years since September 2018.

To the extent, the country's risk had a strong drop of 49 points, enabling it to reach its minimum in 26 days after it exceeded 1,000 points a week, a record in Macri.

The country's risk is an indicator developed by JP Morgan that measures the difference in yields that pay US dollar treasury bills and bonds, which is why lower bond prices – which implies a rise in yields because at a lower price the higher expected premium is triggered by an indicator .

"Basically, it is a reaction to the disapproval of federal peronist Cristine Fernandez, limiting Peronism to be fully united against Mauricia Macri and giving Chaniemos greater chances of re-election if the elections are effectively polarized," Diego said. Martínez Burzaco, Director of MB Inversiones.

"What we see is an increase in bonds because Cristina is slightly in the middle, with it as a potential candidate put the country's risk above 900 points, but this new political scenario does not change the economic challenges," Neff added.

For Mariana Sardans, CEO of FDI, there was a folder where there would be three alternatives at the end: "These are three centers right and very friendly with the market, Federal Alternative, Change, and even Albert Fernandez. I see that Cristina has less chances than me.

In the same sense, the expert added, "As the days go by and the economy is improving, and we already see a better climate for entrepreneurs around three weeks, the country's risk will continue to fall for the chance to win the unity of citizens."


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