This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Argentina’s dollar bonds continued to inch up, extending its trend higher since August. As per Jefferies, the rally is likely owing to the government’s recent measures to bring dollars back into the country with investors fearing missing out on the positive update. They said that the measures are turning out to be a big success with more dollars coming into the economy than expected. For instance, since mid-August, about $13bn has entered the system, helping boost foreign reserves. They added that they have “no doubt” about the government being able to meet its 2025 obligations, even if their net reserves have to reach new lows. Another bank that has grown positive on Argentina has been Morgan Stanley. Alongside raising their negative stance EM-sovereign credit by turning neutral, they have also touted Argentina’s debt, by moving it back to their basket of preferred bonds. They said, “Argentina still looks cheap, both outright versus our scenario valuations and versus EM HY. This means that despite missing out on the latest rally, we move Argentina back to a like stance”. Particularly, they favored the bonds due 2041 and said that they expect the fiscal outlook and forex flows to improve through Q4, with inflation also falling further.