Domestic bonds are currently pricing very pessimistic scenarios. In case the debt restructuring process ends with a better than expected result (such as a maturity extension without haircuts), domestic bonds prices would be offering attractive entry points.
STRATEGY
Domestic bonds are currently pricing very pessimistic scenarios. In case the debt restructuring process ends with a better than expected result (such as a maturity extension without haircuts), domestic bonds prices would be offering attractive entry points. However, high uncertainty regarding the new administration’s will over debt payments offsets the attractive price levels.
For portfolios seeking to maintain some exposure to domestic securities, we suggest to focus on corporate bonds issued by companies with significant levels of exports and dollar denominated revenues, such as TGS, Aeropuertos Argentina 2000, Adecoagro or Arcor.
Highlights
- Performance: In terms of pesos, Argy bonds closed -1.05% on average last week, according to the IAMC Bond index.
- Global rates: The UST 10-year yield closed at 1.83% today.
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Reporte
Fixed Income Weekly
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