The political turmoil in Venezuela that erupted in electing Hugo Chavez’s successor is causing emerging-market debt investors to flood into Argentina, chopping its relative cost of borrowing by the most in four years.
MFS Investment Management, manager of the oldest U.S. mutual fund and an ally of the Argentine government in its legal fight against disgruntled creditors, is reducing holdings of the South American nation’s debt.
Venezuelan President Hugo Chavez’s political agenda could delay a currency devaluation expected by investors to at least early next year as the government tries to consolidate power in regional elections in December.
Venezuelans lined up to purchase airline tickets and TVs this weekend in a bid to protect themselves from price increases after ailing President Hugo Chavez devalued the bolivar for a fifth time in nine years.
Argentina’s dollar bonds are extending the steepest losses in emerging markets after a U.S. appeals court rejected a request to rehear a case against holders of defaulted debt, increasing the likelihood the government will lose the battle.
Chilean interest-rate swap rates rose to the highest level in more than a year as traders increased bets that the central bank will raise borrowing costs tomorrow for the first time since September 2008