Argentina's 100-Year Bonds Plunge
- Amid rising U.S. rate prospects, traders dump long maturities
- ‘International and local risk remains’ for nation’s economy
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Things went from bad to worse for Argentine bondholders this week as the effects of a global market rout throttled demand for a risky trade that had become a Wall Street favorite.
The pain has been particularly acute for investors of the country’s 100-year bonds. Their price dropped to 91 cents on the dollar from 103 cents at the end of last year as traders unnerved by the prospect of rising U.S. interest rates dumped securities with long maturities. Overall, the country’s dollar-denominated bonds lost 2.1 percent over the first four days of the week, leaving them down more than 6 percent on the year, the worst performance in emerging markets, according to JPMorgan Chase & Co.’s EMBI Global Diversified Index.