The government disclosed the final details of the international and Argentine law restructurings, which have a settlement date as at September 4th. Even after having the swap practically closed, at least with the large groups of bondholders, it is striking that bonds continue to trade at an implicit rate of 12% and with an inverted curve.We estimate that this is a consequence of investors' lack of confidence in the government, deepened by the negative context of the pandemic. We believe that in order to maintain a sustainable path toward a low country risk, the government will need to undertake structural reforms and direct fiscal and monetary policies.
Reporte
Fixed Income Weekly