(Bloomberg) -- The cost of hedging Argentina's sovereign debt against losses soared to a multi-year high Monday after President Mauricio Macri was unexpectedly defeated by a landslide in a primary vote, signaling a potential return to the policies of his predecessor, Cristina Kirchner, the vice presidential candidate on the rival ticket. Prior to Macri's presidency, the South American nation was locked out of financial markets for a decade and a half after defaulting on some $95 billion in bonds. Argentina's credit-default swaps now suggest an implied default probability of 75% over the next five years, data compiled by Bloomberg show.
To contact the reporter on this story: Ben Bartenstein in New York at bbartenstei3@bloomberg.net
To contact the editors responsible for this story: Sophie Caronello at scaronello@bloomberg.net, ;Julia Leite at jleite3@bloomberg.net, Shannon D. Harrington
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