In the wake of Congress’s defeat of the ruling party and market uncertainty caused by the collapse of its first law, major Wall Street banks are set to embark on a visit to Argentina tomorrow. Led by representatives from Barclays, Bank of America, Citigroup, Goldman Sachs and HSBC, along with a group of clients (mostly investment funds), they will meet with government officials, businessmen, political consultants and economists to discuss Javier Milei’s program, the prospects of bonds and possible investments.
Investors will come to “monitor” 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. Some investors will be interested in selling their bonds, while others will be looking to buy them. The banks will also be meeting with government officials such as Luis Caputo and Pablo Quirno as well as the head of Central Bank Santiago Bausili and vice president Vladimir Werning.
The visit is part of an annual tradition where these banks visit different countries in Latin America to meet with local authorities. However, due to current circumstances in Argentina it is seen as a significant move by these banks. BlackRock recently bought $1.8 million worth of Bopreal dollar bond which aims to regularize commercial debt for companies in Argentina. This operation was known after Milei’s virtual meeting with Larry Fink CEO of BlackRock investment fund. Some analysts have warned about double-digit inflation until at least Q1 2023 due to this event while others have said that there is interest in rediscovering Argentina despite great caution.