As the ruling party in Congress was defeated and uncertainty lingered in the market due to the failure of its first law, major Wall Street banks will meet with government authorities in Argentina tomorrow to discuss Javier Miley’s program, bond prospects, and possible investments.
Leading the visit are representatives from Barclays, Bank of America, Citigroup, Goldman Sachs, and HSBC, accompanied by a group of clients (mainly investment funds) who will speak with officials from the executive branch, the Ministry of Economy, and the Central Bank as well as businessmen, political consultants, and economists.
Investors will come to “monitor” government bonds that several funds purchased last December. With Miley coming to power and her promises to advance a shock plan, the dollar titles rose to 14%, but fell to almost 7% last week after the failure of the omnibus bill and the war launched with governors.
“Each one will have different agendas,” said one bank representative. “Some will have bonds and see if it’s time to sell or not, others will see if it’s worth buying.” All of them are investors in bonds, mostly sovereign bonds, maybe there is something corporate,” they added from one investment fund. BlackRock bought $1.8 million in Beaupreal bonds last week which is a move made by government seeking regulate companies commercial debt. The operation became known after a meeting that Miley practically had with Larry Fink CEO of largest investment fund in world. In recent days JP Morgan issued warning signals about Argentina stating double-digit inflation through first quarter; an increase in official dollar June; confirmed that “the main risks are manageability and population tolerance for adjustment.” They also considered rejection of omnibus bill an “unprecedented event” stating that lack support from Congress suggests administration should recalculate policy strategy opening door more difficult period that could lead greater volatility affecting exchange rate gap.