The fall of the first law in Congress and uncertainty in the market have led Wall Street banks to visit Argentina to discuss Javier Milei’s program, bond prospects, and potential investments.
Representatives from Barclays, Bank of America, Citigroup, Goldman Sachs, HSBC, and a group of clients (mostly investment funds) will meet with government authorities, including officials from the Executive, Ministry of Economy, and Central Bank as well as businessmen, political consultants, and economists.
The visit is aimed at monitoring the sovereign bonds that several funds bought 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 the war unleashed with governors.
Investors will come to “monitor” their investments in Argentina. Some will be looking at selling their bonds while others will be considering buying them. The banks are mostly interested in sovereign bonds. There may be some corporate investments as well. Barclays will arrive this Monday in Buenos Aires followed by other banks such as Jane Fraser from Citibank on Friday and HSBC executives towards the end of February.
The main idea behind this visit is to contact potential investors with businessmen and some authorities. There is interest in rediscovering Argentina despite great caution. BlackRock bought US$ 1.8 million of the Bopreal dollar bond last week with which the government seeks to regularize commercial debt of companies. JP Morgan issued cautionary signals about Argentina recently stating that double-digit inflation is expected until the first quarter with a discrete jump in official dollar in June