Argentina’s sovereign bonds closed higher on Monday, fueled by speculative buying in the face of their attractive stocks, in a spot on the lookout for signs of government-led debt restructuring, a situation that was reflected in an improvement in country risk, traders said.
Argentina is going to establish “guidelines” for the restructuring of its debt for some US $ 70 billion, although the country is not yet ready to make a formal proposal to creditors, a source with knowledge of the government’s plans told Reuters.
“The month of March ends, meanwhile, the government will pay on time and form the interest on the even bonds for about US $ 250 million,” said the brokerage Portfolio Personal Inversiones.
Another analyst pointed out that if the payment is made, the next coupon for New York law is on April 22 for about US $ 503 million in interest on Global bonds 21, 26 and 46.
While the country risk of Argentina, measured by the JP.Morgan bank, fell 135 units to 4,050 basis points, compared to a level of 4,519 points registered last Monday.
* Sovereign bonds in the local OTC market ended with an improvement of 3.3% on average, driven by the improvement noted in the dollar-denominated ‘Par’ and ‘Disc’ bonds.
* “The bonds are already trading at parity levels close to ~ 25%, which could be close to the ‘recovery value’ in the event of a ‘default’ event, which explains the most inelastic reaction to the roller coaster of the external climate, “said Gustavo Ber, economist at Estudio Ber.
* The S&P Merval stock index rose 1.35% to a provisional close of 24,384.24 units, after falling 5.59% on Friday. The leading benchmark accumulated a drop of 30.28% in March.
* The peso in the wholesale market depreciated a slight 0.09%, to 64.4675 / 64.47 units per dollar, in a market controlled by foreign currency purchases from the central bank. The interbank currency lost 3.51% in March.