Empresa Distribuidoray Comercializadora Norte SA’s bonds are plummeting at a record swiftness on speculation the decline of the Argentine peso will accelerate subsequent to Oct. 23 presidential elections, threatening the utility’s capability to get together dollar-denominated obligations.
Values of the corporation’s securities due in 2022 chop down 8.97 cents to 74.27 cents on the dollar in the past week, the largest five-day fall ever, at the same time as yields augmented 189 basis points to 14.49 percent. The bonds have mislaid 17.1 percent in a month, measured up to with a 4 percent average fall on Latin American efficacy debt, according to Credit Suisse Group indexes.
“The post-election point of view for the peso is that it will deflate at a much quicker rate than 2011,” said Velasco. “Edenor is one of the corporations that are most uncovered to currency mismatching. All of its proceeds are in pesos and its debt is approximately totally in dollars.”
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