Such is the case of
On the bond side, the most punished bonds are, practically in the same line, the Global 29 and 30, which together with AL29 and AL30 show setbacks ranging from 32 to 35 percent.
It is worth noting that a good part of these corrections were recorded throughout June, which makes the country risk continue to climb, reaching 2,277 basis points, which implies that a new record was reached in the post-debt restructuring era of 2020.
Why stocks and bonds fall
According to analyst
This view is shared by the analysts of Portfolio Personal Inversiones (PPI), as they maintain that “the long rates abroad, with the US 10-year rate exceeding 3% and the strength of the US dollar index, hurt the entire emerging debt universe and the region’s bonds”.
From the point of view of the local financial market, the reasons for this situation are diverse, but among them we can mention the
This is in addition to the complicated situation that the peso debt market is going through, after the exchange that took place on Wednesday with the intention of decompressing the heavy maturities of peso debt to be faced next week. Originally,
Government swap: this is how the market responded
Although sources from the
On the other hand, dollar-denominated securities also showed their worst side, as the AL29 lost 2.5%, while the Global 35 dropped another 2.9%. Meanwhile, Argentine stocks on
Locally, the S&P Merval index fell 2.9%, with the largest declines being those of YPF (7.8%),
Argentine bonds and stocks: will they improve their performance?
With the new drops this Thursday, sovereign bonds show yields that place them among the riskiest in the world. To make matters worse, with a clear upward trend, since they quadrupled since
“If we analyze the yields of the different bonds, which in the case of AL29 and AL30 exceed 40%, we conclude that they reflect the market’s absolute lack of confidence”, says analyst Agustín Cramo. And he adds: “Although in the short term there are no significant maturities for most of them, investors’ concern that at some point we are in the presence of a new credit event is palpable”.
On the other hand, Balanz analysts consider that the possibility of bonds improving their performance does not seem to be immediate, since “until there is a stabilization of inflation in developed countries that helps to improve global risk appetite, the pressure on local assets will hardly dissipate”.