Monday Meeting: Wall Street Banks to Monitor Government Bonds and Investments

In the wake of the ruling party’s defeat in Congress and market uncertainty following the fall of its first law, Wall Street banks are set to meet with government officials in Argentina to discuss Javier Milei’s program, bond prospects, and potential investments.

Representatives from Barclays, Bank of America, Citigroup, Goldman Sachs, HSBC, along with a group of clients (mostly investment funds) will be present to discuss with officials from the Executive, Ministry of Economy, and Central Bank.

The visit comes as investors monitor sovereign bonds that several funds purchased last December. With Milei’s rise to power and her promises to advance a shock plan, dollar titles rose up to 14%, but last week they fell to almost 7% after the setback suffered by the omnibus law and the war unleashed with the governors.

“Each one will have different agendas,” one investment fund representative said. “Some will have bonds and be seeing if it is time to sell or not; others will be seeing if it is worth buying…they are all investors in bonds, mostly sovereign.” The visit is expected to include meetings with potential investors and businessmen as well as some authorities.

BlackRock bought US$ 1.8 million of the Bopreal dollar bond last week in an operation that became known after Milei met virtually with Larry Fink, CEO of BlackRock’s largest competitor. In recent days, major U.S. banks issued cautionary signals about Argentina due to rising inflation and concerns about governability and population tolerance for adjustment. The rejection of the omnibus law was considered an unprecedented event by JP Morgan who estimated double-digit inflation until Q1 2023 and warned that “the lack of support from Congress suggests that The administration should recalculate its political strategy.”

By Editor

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