Thursday , August 11 2022

The country's risk falls again under 700 points – 02/22/2019


The country's risk, which measures how much Argentina has to pay to go to debt in relation to the US, falls for the second consecutive day and returns to be below 700 points.

The EMBI Index is 696 points, 2.11% less than on Thursday and return to the Mon values.

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At the beginning of February, the JP Morgan index had touched a minimum since November, when it reached 630 points. It seemed to be going to drill the 600 points, but it slowed the international situation and made it return to levels closer to 700 points.

The index prepared by JP Morgan bank ended 2018 in 814 baseline points. That is, Argentina had to pay rates of around 10.64% (those of 8.14% plus 2.5% of the US Federal Reserve rate) to lend in the market.

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But during this year, this index was having a continuous decline that was cut on February 8, when it hit 633 basis points, something that was not achieved since the beginning of November last year. This means that, during 2019, the country's risk has decreased by 23%. However, from that higher level and now there are 63 points up.

The risk of a country's risk is derived from the bond price. If its cost is falling, the product is rising and Argentina's rate rises.

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