Argentina Investors Trim Risk Ahead of ‘Coin Toss’ Primaries
- Vote set for Aug. 11 serves as poll on presidential contest
- Extreme result could fuel market boom or bust, investors say
This article is for subscribers only.
Investors are pulling back from Argentina before a primary election this weekend that will set the stage for October’s presidential vote, with the potential for a boom or bust ahead.
Aberdeen Standard Investments recently reduced its stake in local-currency debt, while Credit Suisse told investors to lighten up positioning ahead of the Sunday primary. JPMorgan Asset Management says even the currency’s juicy carry trade isn’t as appealing anymore as long-term returns could evaporate depending on the ballot’s outcome.