Prospect of Fernández Comeback Spooks International Investors

When investors dumped Argentine bonds en masse just as copies of Cristina Fernández de Kirchner’s autobiography Sincerely began to fly off the shelves last week, it gave new meaning to the term “bestseller,” the Financial Times reported. The asset sell-off took place as all emerging markets were suffering from the strengthening US dollar. But the enthusiastic reception for the populist former president’s memoirs — hard on the heels of polling showing her popularity rising — gave investors one more reason to fret about her possible return to power at presidential elections in October. “People woke up to the fact that Cristina could run,” said Alejo Czerwonko, emerging markets strategist at UBS Global Wealth Management. Until recently, most investors believed the re-election of Mauricio Macri, Argentina’s market-friendly president, was assured. But that changed after last year’s currency crisis wrought havoc on the economy and forced Mr Macri to ask for a $56.3bn bailout from the IMF. Read more