Saturday , April 1 2023

Country risk is less than 700 points, minimum one and a half months


The recovery of government bonds set the country's risk below 700 basis points Source: Archive

Country risk rate

For the first time since the beginning of December (a month and a half ago), for the first time, the 700-point level was triggered by the long-term improvements that the Argentine debt bond markets have been operating in recent weeks.

Permanent peso recovery at wholesale prices also contributed to the fall of the indicator produced by JP Morgan.

This sensitive indicator, which reached its peak of 837 points on the last day of 2018 (the highest value in the "macro-era"), dropped by four basis points and was 699 points, reaching its lowest level in six weeks and confirming changes in investor sentiment regarding Argentina's risk .

The new withdrawal was mainly due to the fact that dollar-denominated bonds traded abroad and which started the day with the loss caused by the sales wave to make a profit (up to 4% in the previous week) completed the wheel with further improvements of about 25 cents on average Sebastian Cisa said at the SBS Group Operations Table.

"There is a significant change in the market," said Nery Persichini, GMA Capital Investment Manager.

"On average, ratings were about 25 cents on the whole curve," said Sebastián Cisa, Head of Operations at SBS Group. who announced in detail that they came in the second half of the business round.

This year, bond yields range from 4.5 to 6.25%. This allowed some titles to quickly reduce their performance, which dropped by 250 points in the middle of the curve. All this was due to a "significant change in the market", according to Nery Persichini, GMA Capital Investment Manager.

Country Risk Indicators determine the extent to which the market will demand from a country of 2.71% that the US Treasury returns within 10 years in a hypothetical case if it wants to finance it abroad. Argentina should reduce this gap by half to return to the region's average level and gain access to the voluntary foreign debt market, which is key until 2020 when the IMF agreement ends.

Source link