Bonds recover 4% and financial dollars fall

The week started off on the right foot for Argentine assets. While the minister Sergio Massa awaits the definitions on the exchange of securities in pesos and the details of the measures with which he tries to recover the reserves, the market resumes optimism.

This Monday Argentine Dollar Bonds Bounce Around 4%. Leading the rise was the AL30, one of the most representative stocks, which advanced by 4.1%. With this performance, it reduces the decline accumulated last week and now drops by only 0.7% in August.

The rearrangement of bonds pushes country risk up by 1%. In this way we place the JP Morgan indicator which measures the excess cost of Argentine debt 2374 basis points. Even so, this index is 40 points higher than at the beginning of the year.

Bonds in pesos also rose, with increases of up to 2%, amidst the uncertainties due to the bond swap carried out by the Ministry of the Economy.

The Treasury launched a voluntary exchange offer on Wednesday to take off the deadlines for the next three months. Da Cohen specify that “the instruments expiring in August can be exchanged with a double bonus (whatever pays more between CER and devaluation) maturing in June 2023; those maturing in September for a dual bond maturing in July 2023 and those maturing in October for a dual bond maturing in September 2023. The maturities for the next 3 months reach 2.5 trillion dollars“.

Financial dollars are now moving below $ 280. The MEP dollar, which is listed on the Buenos Aires stock exchange, returns 2.5%, at $ 273.3, while that counted with liqui, the one chosen by companies to be dollarized, drops by 2%. $ 278.8.

Turn down the blue dollar

It also falls on the blue dollar, although it remains much higher than the financial dollars. The informal goes back to a peso and is sold to $ 292. Therefore, the gap with the wholesale exchange rate, quoted at $ 133.6, is 120%.

The streak extends to Argentine stocks trading on Wall Street. Almost the entire ADR panel is on the rise, with YPF in the lead 6.3%. Only two documents are listed in red: Edenor, which falls by 3.7% and thus puts a pause in the rally to the upside it has marked since Sergio Massa took office – grew 11.2% in the month -, and Ternium, which lost 3.2% in this round.

Today the wait also passes through the reserves of the Central Bank. The body is already accusing a negative balance of US $ 924 million in its interventions on the market and the Government hopes for a change in trend.

Mass’s plan is to persuade exporters to speed up foreign exchange liquidation to bolster the Central Bank’s reserves $ 5,000 million over the next two months and at the same time you bet that this month the temperature will improve and that help reduce the demand for dollars to import energy.

From Cohen they note that “it is doubtful that exporters bring in $ 5 trillion more than they normally liquidate at this time of year (for example, they liquidated more than $ 7 billion last year).”

Another of Massa’s initiatives is the strengthening of reserves with international loans. “Without further details, he announced they are negotiating with international organizations to accelerate $ 1.2 billion disbursements and repo loans with commercial banks,” Cohen says.

AQ