Public securities showed a deeper showing of decline, though somewhat more moderate than in the previous round. This Wednesday they reversed the slight initial rise and recorded a 1% average fall for global bonds at 5:00 pm, when the local stock exchange ceased operations.
These bonds in dollars with foreign law are references to Argentina’s debt abroad and, in some cases, such as The turnover of GD35 and GD46 is USD 30 . falls below, the lowest price since listing in September 2020.
In this episode, country at risk Argentina renewed its ceiling since the sovereign reorganization, 1,819 points Basic, with a jump of 22 units at 11 am. At the age of 17 he was writing 1,816 units.
Ariel Manito, the commercial manager of Portfolio Personal Inversions, commented that “the movie we saw before the assembly elections—when a decoupling between equities and fixed income was seen—clearly didn’t arrive and, until bonds hit the floor, Stocks have these high volatility movements. What is expected? In principle, an agreement with the Monetary Fund And although there are hopes, market wants hard facts No more promises.
Paula Gandaras, Head Portfolio Manager of AdCap Asset Management, said that “Argentina has a Long history of setting up programs with the IMF that were not completed until later, So it must be possible to have respect of the first agreement, and for this, need a political anchor, We have nothing without political compromise. This is the biggest uncertainty we have today. First of all IMF will need to reduce the rules for the exchange rate Because the fund is up against many of the measures that are in place today. First they have to agree within Front of All, and then they have to agree Together for Change”.
The JPMorgan Indicator, which measures the rate of return of the US Treasury with its emerging peers, touched a recent low. 1,101 points the original on September 10 of the previous year, immediately after the completion of loan swap with private creditors.
Since then, Argentina’s country risk has increased by more than 700 basis points, meaning that if the government tried to place bonds overseas under these circumstances, Must pay annual rates of 20% in dollars To obtain prior approval from US Treasury bonds in the voluntary debt market to pay an annual yield of 1,645% over their ten-year issues.
With local law for securities denominated in dollars, the situation is similar. While small tranche globals already yield more than 23% annually, Yields 24% from Bonner 2030 (AL30) and 26% from Bonner 2029 (AL39) annual.
for the experts research for traders, “Prices of securities issued in September last year remain depressed and are trading at lowest prices since the restructuring. And this generates a . high inherent probability of default,
“a Agreement with the IMF is important, as it will clarify how the economic course will be in the next two years. a . announcement of dispatch of a multi-year economic program bill Agreed with IMF staff did not reassure investors, who are still concerned about the concrete progress of the said plan,” he added from Research for Traders.
Investors await more details about the multi-year program that the government will present in Congress in December to be debated
“Argentine bonds do not get a destination. NS Debt market focused in the short term And the macro challenges in the coming weeks. NS Uncertainty did not go away with election results Economically and the combo of recent months is repeated: a pending IMF agreement, monetary noise and exchange rate pressures negatively affect the markets. NS lack of economic measures To correct the existing imbalance affects the performance of the loan”, indicated the experts of personal investment portfolio,
“We see that areas with more Tensions in front of an agreement with the IMF it will be Pathway to Fiscal Consolidation and Role of Rates Of interest. In terms of exchange controls, it is possible that once Argentina can permanently recover international reserves, a progressive easing of exchange sanctions will be agreed”, commented the consulting firm Delphos Investments in a report.