Argentina

Turkish and Argentine assets have been battered over the past few months, but one investor believes that both countries can provide good value and is expanding its exposure.

Yields on Argentina’s dollar-denominated debt hit their tightest levels since early August on Thursday after the IMF increased the size of its financing package from $50bn to $57.1bn.

The IMF and Argentina’s announcement of a new improved financing package came after markets closed on Wednesday, but bond investors say it can be positive for the country's sovereign bonds.

Argentina’s bond rally may not have much further to run even if the country does clinch a larger deal with the IMF, as investors turn their focus to president Mauricio Macri’s challenge in retaining popularity.

Argentine state-owned oil and gas company YPF said on Tuesday that it would buy back $176.245m of the $452.198m in dollar bonds it is due to repay on December 19.

Investors’ eyes are on the Middle East this week as a slew of borrowers bring Sukuk trades to market, but while hopes are high for successful deals, a Turkish central bank rate decision looms large in investors’ minds.

Argentine state-owned oil and gas company YPF is looking to buy back all of its dollar bonds due in December, offering a small premium over face value.

A positive day for Argentina’s bonds on Thursday did not reverse its inverted yield curve in dollars as analysts say investors are becoming ever more concerned about the country.

Argentina’s plan to accelerate its fiscal adjustment left some Buenos Aires-based analysts satisfied on Monday, but all eyes will be on the reopening of the US market on Tuesday to know whether the government has won back the confidence of markets.

As Argentine bonds finally found a floor last Friday, analysts said that the big adjustment in the Argentine peso may have happened. But the week of volatility drove S&P to become the first rating agency to take action on the sovereign since the turmoil began.

An unprecedented vote of confidence from the International Monetary Fund (IMF) and an unprecedented level of monetary tightening were not enough to arrest a slide in Argentine assets this week, leaving markets fearing the worst.

President Mauricio Macri’s announcement on Wednesday that Argentina had asked the IMF to bring forward some disbursements of its $50bn stand-by agreement could not arrest a slide in the peso or government debt.