Amidst uncertainty in the market and following the defeat of the ruling party in Congress, major Wall Street banks are set to embark on a trip to Argentina starting tomorrow. The banks, including Barclays, Bank of America, Citigroup, Goldman Sachs and HSBC, will meet with government authorities to discuss Javier Milei’s program, the prospects of bonds and possible investments.
Investors are interested in monitoring the sovereign bonds that they purchased last December. With Milei’s rise to power and her promises to implement a shock plan, dollar titles rose up to 14%, but they fell to almost 7% after the setback suffered by the omnibus law and the war unleashed with governors. Each investor will have different agendas based on their interest as in all other countries where they invest.
The operation became known after JP Morgan estimated double-digit inflation until the first quarter and confirmed that “the main risks are governability and population tolerance to adjustment.” There is a lot of travel interest shown by these trips scheduled for the next few weeks. During a talk at Miami Herbert Business School prior to the fall of Bases law, its architect Federico Sturznegger highlighted that “Argentina is an extraordinarily stable country although not in economic or inflation terms.” He predicted: “The corporate state is a very difficult enemy to defeat.”