Wall Street banks arrive this Monday to meet with the Government and monitor bonds and investments

After the defeat of the ruling party in Congress and in the midst of uncertainty in the market due to the fall of its first law, The main Wall Street banks will disembark in Argentina starting tomorrow to meet with government authorities, interested in Javier Milei’s program, the prospects of the bonds and possible investments.

The visit will be led by representatives from Barclays, Bank of America, Citigroup, Goldman Sachs and HSBC, along with a group of clients (mostly investment funds) to talk with officials of the Executive, the Ministry of Economy and the Central Bank, as well as businessmen, political consultants and economists.

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 the governors.

“Each one will have different agendas, it is the same interest as in all the other countries where we invest…some will have bonds and are going to see if it is time to sell or not, others will be seeing if it is worth buying…they are all investors in bonds, mostly sovereign, there may be something corporate,” they pointed out from an investment fund.

Barclays will arrive this Monday in Buenos Aires and then the rest of the entities will be added. Next will be Jane Fraser, the CEO of Citibank, who will arrive next Friday. HSBC executives will do so in the last week of February. “The idea is to contact potential investors with businessmen and some authorities,” one of the banks said. “There is interest in rediscovering Argentina, although with great caution,” they stated from the bottom.

BlackRock bought last week US$ 1.8 million of the Bopreal dollar bond, with which the government seeks to regularize the commercial debt of companies. The operation became known after the meeting that Milei had virtually with Larry Fink, the CEO of the largest investment fund in the world.

In recent days, the largest banks in the United States issued cautionary signals about Argentina. JP Morgan estimated double-digit inflation until the first quarter, a discrete jump in the official dollar in June and confirmed that “the main risks are governability and the population’s tolerance to adjustment”.

In this sense, he considered the rejection of the omnibus law “an unprecedented event” and warned that “the lack of support from Congress suggests that The administration should recalculate its political strategy, opening the door to a more difficult period that could lead to greater volatility”, which could impact the exchange rate gap.

The banks’ research departments, in charge of organizing the trip, hope that their clients will be able to meet with the Minister of Economy, Luis Caputo, and his Secretary of Finance, Pablo Quirno, the head of the Central Bank, Santiago Bausili, and its vice president, Vladimir Werning.

There are a lot of trips in the next 2 or 3 weeks, the fact that there is so much travel shows that there is interest“said a Wall Street source. However, from the largest international forum, they maintain that the trip is within the framework of visits that are organized every year to different countries in the region.

During a talk at the Miami Herbert Business School, prior to the fall of the Bases law, its architect Federico Sturznegger highlighted that “Argentina is an extraordinarily stable country, although not in economic or inflation terms.” And he predicted: “The corporate state is a very difficult enemy to defeat”.

By Editor

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