BlackRock Sees Argentina’s 8.3% Bond Rally Fading as 2027 Election Revives Default Fears
Updated
Updated · Bloomberg · Jul 1
BlackRock Sees Argentina’s 8.3% Bond Rally Fading as 2027 Election Revives Default Fears
1 articles · Updated · Bloomberg · Jul 1
Summary
Argentina’s sovereign bonds, up about 8.3% this year, are likely to lose momentum as next year’s presidential election brings political risk back into focus, BlackRock’s Pablo Goldberg said.
Two ratings upgrades helped drive the rally and made Argentina the best-performing sovereign debt market in Latin America so far this year, but BlackRock expects that outperformance to fade.
Past defaults and Argentina’s turbulent economic history are keeping the country’s political risk premium stubbornly high, limiting how far the bond rebound can run.
The call suggests investors may demand more caution on Argentine debt even after recent gains, with election uncertainty again threatening to overshadow improving credit sentiment.