The government disclosed the final details of the international and Argentine law restructuring, which have a settlement date as at the 4th of September. Even after having the swap practically closed, at least with the largest bondholders groups, it is striking that bonds continue to trade at an implicit 12% yield 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 of low country risk, the government will need to undertake structural reforms and direct fiscal and monetary policies.
Reporte
Fixed Income Weekly