Argentina Losing Luster as Debt Glut Adds to Election Risks
- Sovereign bonds among worst performers since century sale
- Macri’s party to face Cristina Fernandez in midterm elections
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The shine is starting to come off President Mauricio Macri’s Argentina.
The country’s overseas bonds are among the worst performers in emerging markets over the past three weeks, the peso keeps hitting record lows and that foreign-exchange volatility led one of its biggest energy companies to scrap a debt sale. Perhaps most embarrassingly, the nation lost out on its bid to regain emerging-market status last month, leaving it stuck at the “frontier” level with the likes of Mauritius, Sri Lanka and Kazakhstan.