Argentina’s bond market has fallen from poor to pitiful after a US court ruling saying that all bond holders must be treated equally.
I won’t rehash the tedious details of the 12-year default saga except to say that another default is on the horizon. Bloomberg reported today that the province of Neuquen is selling dollar-linked bonds that mature in 18 months and are expected to yield a whopping 9%.
Today, five-year CDS are at 2209 bps and the yield spread over Treasuries rose 21bps to 1230 — the highest in emerging markets.
Broader markets are seemingly well-insulated from a default…seemingly.