Franklin Templeton's Hasenstab hit with $1.8bn Argentine bond losses - reports

In the wake of Monday's sell-off

Franklin Templeton bond funds managed by Michael Hasenstab have reportedly lost a total of almost $1.8bn (£1.5bn) in a single day as a result of the manager’s exposure to Argentinian government bonds, which were hit will with a sell-off in the wake of President Mauricio Macri primary elections defeat over the weekend.

Hasenstab has been one of the biggest buyers of Argentine debt, having purchased more than three-quarters of $3bn "Bote" made available in May 2018, with six of his funds building significant exposure to the country's bonds. However, after the weekend's news investors have fled the assets on fears of a return to populist Peronist rule in October's presidential election, driving the peso down more than 20% against the dollar and the yield on shorter-dated Argentine bonds up to distressed levels. The likelihood of a debt default in the next five years has also spiralled to 75%. In th...