Fixed income investors have enthusiastically backed Miley’s ambitious reform program in recent months.
Investors are no longer taking it for granted that Argentina is headed for default as President Javier Miley stormed bond markets with plans to reshape South America’s second-largest economy. Bloomberg reported this.
Argentina’s government bonds returned 73.5% to investors in 2024, the best in a developing part of the world.
Fixed income investors have enthusiastically backed Miley’s ambitious reform program in recent months. Prices for some of Argentina’s sovereign bonds rose to their highest levels since they were issued as part of the restructuring in September 2020.
Financial managers also expect Miley to continue to make progress in fighting triple-digit inflation and ending years of budget deficits.
The spread on US Treasuries has narrowed by 941 basis points since Miley took office in December, prompting a wave of debt sales by Argentina’s biggest companies.
But Wall Street warned that the country still has a long way to go before the government can consider returning to the markets.
As you know, in December of last year, the Argentine government announced the devaluation of the peso by more than 50% and announced significant cuts in government spending as the first step in the “shock therapy” program of the new president of the country, Javier Miley.
Source: korrespondent
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