Domestic bonds are currently pricing very pessimistic scenarios. The main risk is that the project sent by the Government to the Congress does not contain any details about a restructuring proposal, which still generates significant uncertainty and does not make it attractive to increase exposure to local assets.
STRATEGY
Domestic bonds are currently pricing very pessimistic scenarios. The main risk is that the project sent by the Government to the Congress does not contain any details about a restructuring proposal, which still generates significant uncertainty and does not make it attractive to increase exposure to local assets.
For portfolios seeking to maintain some exposure to domestic securities, we suggest to focus on corporate bonds issued by companies with significant exports and dollar denominated revenues, such as TGS, Aeropuertos Argentina 2000, Adecoagro or Arcor.
Highlights
- Performance: In terms of pesos, Argy bonds closed -4.66% on average last week, according to the IAMC Bond index.
- Global rates: The UST 10-year yield closed at 1.67% today.
Reporte
Fixed Income Weekly
1Fixed Income CMA.pdf1.56 MB