Argentina's country risk, as measured by the JP Morgan Emerging Markets Bond Index Plus, dropped below the 2,000 level as bond prices recovered from the market shock which followed the Aug. 11 presidential primaries.
The country risk index dropped 122 points to 1,907, El Cronista reported Oct. 10, as investors began to pick up Argentine bonds at low prices.
Bonds were left at offer prices after the results of the presidential election primaries, which saw Peronist opposition candidate Alberto Fernández emerge as a clear front-runner over market-friendly President Mauricio Macri. Market operators attributed the drop in country risk to the purchase of bonds, which showed gradual recovery in their prices.
Argentina's country risk jumped above 2,000 points after the Aug. 11 primaries, from just above 800 points before.
According to a portfolio manager cited in the report, investors are still pricing in a tough renegotiation of Argentine debt ahead.
The S&P Merval stock market index was up 3.30% to 31,340.81 as of 1:59 p.m. ET on Oct. 10.
