Home » Business » Markets: profit taking after the sharp rise due to the announcement of the exchange offer

Markets: profit taking after the sharp rise due to the announcement of the exchange offer

Meanwhile, the Sovereign dollar bonds remain firm and earn 1.7% on averageAt its highest prices since the beginning of March, the expectation is to reach an agreement with creditors of debt in foreign currency.

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The leading panel S&P Merval of ByMA (Argentine Stock Exchanges and Markets) subtracts 2.2%, to 42,420 points at 16:20, after having progressed 9% on the Monday wheel.

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Argentina, which is dragging a long economic crisis, formalized its offer to restructure its debt before the United States Securities Commission (SEC) and all eyes are now on the Ad Hoc group, which includes the BlackRock and Fidelity funds.

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“There is a very important group of investors, Ad Hoc, with whom we have not had an agreement (…) We hope that there will immediately be some statement against it, and then we hope that they will take their time to evaluate and decide,” said the minister. Martín Guzmán in a radio interview. “Our intention is to have an agreement with them,” he added in statements to Radio with Vos.

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The new “final” offer from the Argentine government, which improved payment terms and gave way to disputed legal terms, received quick support from creditors on Monday, boosting Argentine bonds 4% due to expectations of an agreement between the parties.

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While bonds operated in the Electronic Open Market (MAE) subtract an average of 0.3% in pesos, the country risk measured by JP Morgan subtracts 23 units, to 2,355 points Basic, its minimum since last March 5.

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“The amendment of the restructuring offer received strong market support, which expects an agreement between the government and external creditors before the new August 4 deadline. The offer has already been officialized before the SEC (regulatory body) of the United States and it is closer to what the creditors intended, so that several groups of bondholders could sign the agreement, “analysts from Research for Traders.

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Now the Government seeks to achieve high adherence to the swap. It will be declared “valid” if: i) it is achieved accession by 66.6% of all Eligible Bonds, ii) if accession of one or more series of bonds issued under the 2005 contract representing 60% of said securities is achieved, or, accession of 50% of all those bonds, and iii) if accession of one or more series of bonds is achieved bonds issued under contract 2016 that represent 60% of said securities or, accession of 50% of all those bonds.

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If the exchange achieves the New Minimum Acceptance Level (NNMA), Argentina may include in the restructuring any Eligible Bond whose holder has chosen not to participate and will be given: The New Bond 2038 (USD) to the Discounts (USD) . The New Bond 2041 (USD) to the Pairs (USD). And the New Bond 2046 (USD) to any Global Bond (USD).

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“The improvement of the proposal received the formal support of several bondholders and even investment banks. But still opinion of the main creditor is missing -Ad Hoc-, although it is estimated that this will reject the offer, “said analysts at Research for Traders.

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