Argentina Peso Collapses 30% To Record Low After Election Shock


Market pricing in default

Credit-default swap trading now shows an implied probability that Argentina will suspend debt payments over the next five years at about 75% versus just 49% at the close of the trading day on Friday.

Government dollar bonds lost about 25% on average on Monday, pushing prices to a range of 55-60 cents with yields spiking to as high as 35% on short-term notes.

The market is unwilling to give Fernandez the benefit of the doubt.