Wall Street banks are set to visit Argentina tomorrow to meet with government officials and discuss Javier Milei’s program, bond prospects and possible investments. Leading the group will be representatives from Barclays, Bank of America, Citigroup, Goldman Sachs and HSBC, along with a group of clients (mostly investment funds). The banks will be interested in monitoring the sovereign bonds that several funds bought last December, following Milei’s rise to power and her promises to advance a shock plan. With dollar titles rising up to 14% but falling to almost 7% after the setback suffered by the omnibus law and the war unleashed with the governors, investors will be keen to rediscover Argentina while being cautious.
BlackRock bought US$ 1.8 million of the Bopreal dollar bond last week, which is an operation known after the meeting that Milei had virtually with Larry Fink, CEO of BlackRock. In recent days, the largest banks in the United States issued cautionary signals about Argentina due to double-digit inflation until at least the first quarter, a discrete jump in the official dollar in June and warned about governability risks and population tolerance for adjustments. JP Morgan estimated that main risks are governability and population tolerance for adjustments, considering rejection of omnibus law an unprecedented event that could impact exchange rate gap.
The research departments of these banks hope that their clients will be able to meet with Minister of Economy Luis Caputo and his Secretary of Finance Pablo Quirno, head of Central Bank Santiago Bausili and its vice president Vladimir Werning during their trip. However from larger international forum it is stated that this trip is within the framework of visits organized every year in different countries in region. During a talk at Miami Herbert Business School prior to fall of omnibus law its architect Federico Sturznegger highlighted that “Argentina is an extraordinarily stable country although not economically or inflation terms”. He also predicted: “The corporate state is a very difficult enemy