The debacle of Argentine bonds continues: they fall by 4% and lose 35% over the year

Argentine bonds sink later this week, with setbacks reaching 4% and accumulate a loss of 35% so far this year. This pushes the country risk to the brink 2300 basis points and renews the market uncertainty about the future of Argentine assets.

The AL30 bond falls 4% at the end of this week and already has a 36% decline in the year. Both the Global 30 and LA29 lost around 2%.

The series of losses also affects the pesos bonds which are adjusted by CER, which they lose more than 3% on this wheel. These stocks that pay a return based on inflation plus a few extra points already have lost up to 25% of their contribution in the month, when investors have left these assets en masse for fear that the government will not be able to cope with the refinancing that lies ahead.

The immediate attention of the market is focused on the renewal of the CER bonds that the Ministry of Economy will indicate next Tuesday 29. It is originally a maturity of 605,000 million dollars, which the Government has managed to limit to 248 billion dollars after an internal card exchange he carried out with the Central Bank and other official bodies.

Even with haircut, Tuesday’s maturity weight remains high, which explains the downward trend in bonds.

“Argentine assets can’t find a floor”strongly emphasize by the Cohen Group.

“In addition to the bad fiscal data, the worrying drop in the price of soybeans, which has returned to levels prior to the outbreak of the conflict in Ukraine, should be highlighted. Without a doubt, this is bad news for an economy whose exports grow solely due to high prices. All of this has hit Argentine assets once again, with widespread declines in bonds and equities, “Cohen said.

All this uncertainty affects country risk, the indicator that measures the excess cost of debt. Today it rises by 0.3%, to 2291 basis points. It is the highest level in 23 months and the peak since the private debt swap in September 2020.

It is the third consecutive day of increase for this indicator e accumulates a 35% loss so far in 2022.

Blue dollar at $ 224

On the equity side, the Merval falls for the fifth consecutive day in the Buenos Aires stock market and lose 0.5%. On the other hand, the decline in ADRs on Wall Street has come to a halt. This Friday almost all Argentine equities are trading higherwith peaks of 8% to take off.

For the second consecutive day, the blue dollar remains stable at $ 224while financial dollars drop around 1%. At the end of the week, the exchange gap with respect to the official dollar reaches 80% for the blue ones and exceeds 90% for the MEP dollar and cash with liqui.

The MEP dollar, which is listed on the Buenos Aires Stock Exchange, falls 0.8% and is below $ 230, in $ 229.9. For its part, cash with liquidity, the dollar used by companies, loses 1.3%, to catch up $ 234.15. is approx the lowest price since 10 Junewhen the escalation of financial dollars began under the heat of the pesos that exited CER bonds and sought refuge in the hard currency.

AQ