US-listed bonds fell 60% from the swap. AP photo
Bank of America cut the valuation of Argentine bonds listed abroad on “a high probability of another debt restructuring outside the country “.
The entity reduced the recommendation from “overweight” to “weight,” which means it suggests lower the holding of Argentine bonds in portfolio, according to the Bloomberg agency.
Valuations are low, but the entity gives way a high probability of a second “hard” restructuring. debt, according to the report by analysts Sebastián Rondeau and Claudio Irigoyen.
They add that it will be difficult for Argentine businesses to outperform sustainably in the current environment. unless there is a major policy change from now on .
Even – they say – the positive surprises have only given small profits bonds, as investors no longer believe in government policies.
The appointment of Silvina Batakis as Minister of Economy was a missed opportunity to move towards a more orthodox management of the economy, they say.
The government can only consider orthodox policies if it faces a major crisis, and such a crisis would be bad for bond prices, they say.
Country risk on the rise again
Country risk rises by 0.1% this Friday, at 2,758 basis points, and remains in the higher values since the last ransom of the debt, made by former minister Martín Guzmán, in 2020.
Since the beginning of the year, the indicator that measures JP Morgan’s banking has worsened by more than 60%.
Starting with the exchange two years ago, Argentine bonds they have lost 65% of their value and the rates they pay prove it excessive distrust of the market: on average, Argentine debt returns 43%, although there are bonds that already pay up to 50%.
NEITHER
Source: Clarin
