Major creditor groups said Monday that their recent debt restructuring offer is backed by bondholders who account for more than half of the country’s foreign debt.
Financial institutions representing 60% of the Exchange bonds and 51% of the Global bonds pledged support for a joint proposal sent to the Argentine Government by the three largest groups of creditors on July 20, He pointed out a letter from the bondholders sent to the Argentine economy minister, Martín Guzmán.
“The relationship between the Government and the bondholders is clearly worn out, which is evidenced in the communiqués recently issued by the parties. However, on the other hand, the positions are so close that nobody is encouraged to kick the board”, analyzed from Delphos Investment.
Argentina, seeking to restructure some $ 65 billion in foreign debt, made a “final” offer in early July to its creditors, which largely rejected it.
“In this final stage of negotiations (for the debt), the authorities would not be willing to modify the economic offer again, but only to agree on the latest legal divergences,” said Gustavo Ber, chief economist at the consulting firm Estudio Ber.
He added that “if this scenario is confirmed, it would be uncertain what the level of accession will be after the union of the main creditors’ committees “.
Argentina announced that the term for the acceptance of the exchange of public debt for some 65,000 million dollars will expire on August 4.
In the meantime, Wall Street closed with losses of up to 1.3% (Nasdaq) affected by the growing trade tensions between the United States and China, and the disruption to the economies caused by the coronavirus pandemic.
General panel: more volume and maximum volatility
After strong increases on Monday, up to 44% in some non-leading stocks, the general panel was once again the epicenter for investors focused on intraday trading, something that was evidenced in the volume traded in some stocks and in some abrupt ups and downs, rare in the same action.
The biggest increases of the day were for two real estate companies: Polledo and TGLT, which climbed 16% and 10%, respectively. In the midst of high intraday volatility, trading in the latter had to be temporarily interrupted by BYMA around 12:30 pm. and it did not return to operate during the rest of the day.
Another that had impressive ups and downs during the wheel was Boldt, who managed to climb 45%, and then in a couple of hours, lose 20%, but then close with a positive 4%. Decidedly not suitable for heart patients.
To take dimension of the growing interest of investors (aggressive and very short-term) in these papers, the volume traded by both Boldt and TGLT was higher than most of the assets that make up the leading panel, and this Tuesday they were only behind de Galicia, YPF, and Banco Macro. “This caught the attention of some investors who tried to take advantage of the volatility to obtain very short-term gains,” they commented from Rava.
Bonds and country risk
In the fixed income segment, The main sovereign bonds in dollars averaged a decrease of 0.7%, led by the longest-term issues.
In turn, the country risk of Argentina, measured by JP.Morgan bank, It was up 1.5% at 2,253 basis points.
–