Argentine markets exhibited volatility this week, influenced by a significant bribery scandal impacting the Milei administration and a newly introduced monetary policy that has been characterized by many as precarious. The EMBI, a gauge of country risk that assesses the probability of debt default, rose to 829 basis points on Tuesday — marking its peak … Read more
Argentine authorities audit investor behavior in repo loans, short-term financial securities with record-high interest rates due to bank liquidity shortages. The Central Bank and local regulator CNV have sought assistance in analyzing the real-time data they receive daily from the country’s two primary exchanges, BYMA and A3, regarding the short-term instruments referred to locally as … Read more
In response to the bribery allegations involving a close associate, President Javier Milei’s senior officials are taking measures to mitigate the repercussions, which are impacting Argentina’s dollar bonds. This situation is exacerbated by a liquidity crisis that has led to a significant increase in interest rates. Argentina’s dollar bonds are being weighed down by bribery … Read more
Argentina’s dollar-denominated bonds and corporate equities listed on Wall Street experienced a significant decline on Wednesday, following the Lower House’s decision to override President Javier Milei’s veto concerning a law aimed at augmenting funding for individuals with disabilities. On the same day, rates for the securities-guaranteed loans surged dramatically amid market uncertainty regarding the administration’s … Read more
Investors are increasingly allocating capital to Argentina’s local markets, capitalizing on the significant depreciation of the peso and the decline in domestic bonds to enhance their exposure to the nation’s assets. Vontobel Asset Management has engaged in the acquisition of Boncer bonds, which are inflation-linked notes issued by the government. Meanwhile, Neuberger Berman has taken … Read more
Argentina’s local debt auction on Wednesday did not meet market expectations, as President Javier Milei’s administration managed to roll over only 61 percent of maturities in a crucial auction. Analysts suggest that this outcome may lead to a depreciation of the peso. The Treasury executed a rollover of 9.1 trillion pesos from the 15 trillion … Read more
IMF gives President Javier Milei’s government grace on a crucial benchmark target, allowing it to continue its US$20-billion lending package. The International Monetary Fund has provided Argentina with some leeway regarding a critical benchmark, following the country’s failure to meet the target this month. Argentina must now increase its net hard-currency reserves to a negative US$2.6 … Read more
Argentina’s bonds experience an uptick following the introduction of new measures aimed at attracting foreign currency. The Central Bank has introduced a series of measures designed to assist the nation in accumulating additional hard-currency reserves. On Tuesday, Argentina’s bonds experienced an uptick following the Central Bank’s announcement of a series of measures designed to bolster the nation’s … Read more