• Fri. Mar 1st, 2024

Wall Street Banks Flock to Argentina Amid Uncertainty and Political Instability


Feb 12, 2024
Monday Meeting: Wall Street Banks to Monitor Government Bonds and Investments

Wall Street banks set to visit Argentina

After the defeat of the ruling party in Congress and uncertainty in the market, Wall Street banks are set to visit Argentina tomorrow to meet with government officials, interested in Javier Milei’s program, bond prospects and possible investments.

The trip will be led by representatives from Barclays, Bank of America, Citigroup, Goldman Sachs, and HSBC along with a group of clients (mostly investment funds) to talk with officials from the Executive, Ministry of Economy and Central Bank. Investors will come to monitor sovereign bonds that they purchased last December. With Milei’s rise to power and her promises to advance a shock plan, dollar titles rose up to 14%, but last week they fell to almost 7% after the setback suffered by the omnibus law and war unleashed with governors.

Each bank has its own agenda for this trip. Some will be looking at whether it is time to sell or not while others will be considering whether it is worth buying more bonds. There may also be something corporate-related on their agenda. BlackRock bought US$1.8 million of the Bopreal dollar bond last week after meeting virtually with Larry Fink, CEO of BlackRock. The operation became known after Milei’s meeting with Fink was revealed publicly. In recent days, major American banks have issued cautionary signals about Argentina due to rising inflation rates and political instability. JP Morgan estimates double-digit inflation until the first quarter and expects a jump in the official dollar in June. They also warn that there is a lack of support from Congress which could lead to greater volatility impacting the exchange rate gap.

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