Prior to the surprising result in the presidential primaries, Argentine markets were having a record year – up 42% YTD on August 9th.1 Since the primaries, yields on Argentina’s sovereign 100-year century bonds have risen 38%, but in June the real exchange rate rose faster that it had in four years and inflation decelerated for the third consecutive month.2 The international community seemed assured by the IMF approving greater Central Bank intervention and granting a $5 bn disbursement in April. In the wake of an extreme market selloff following the primaries, it’s easy for investors to forget these constructive ... (full story)