Wednesday, October 31, 2012
Bond prices sink, risk spread grows after S&P downgrade
The price of benchmark bonds in dollars sank as much as 7 percent in early over-the-counter trade today, a day after Standard & Poor's downgraded the country's sovereign credit rating.
Boden 2013 and Boden 2015 bonds dropped by 1percent, while the Bonar 2015 gained.
At the same time, Argentina's risk spread widened sharply on JPMorgan's EMBI+ bond index, and the cost of buying protection against an Argentine default surged.
In Buenos Aires, the Merval benchmark index opened up 0.6 percent.
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S&P downgrades Argentina's rating
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