Argentina

Argentine sovereign bonds hit highs for the year on Monday after the US court-appointed mediator in the holdout dispute said that the country’s secretary of finance and vice-chief of cabinet would return to New York to negotiate with bond investors in the second week of January.

MTN investors are speculating that the huge yield available on Argentine peso bonds may be worth the risk of buying bonds denominated in a currency which is undergoing official devaluation.

MTN investors are speculating that the huge yield on Argentine peso bonds may be worth the risk.

Argentine energy company Medanito will wait until January to attempt its debut international bond issuance.

Energy company Medanito will hit the road this week to meet fixed income investors ahead of a maximum $150m deal as Argentine borrowers continue to show interest in international markets despite the small size of most companies in the country.

Argentina’s issuers are wasting no time returning to international capital markets after Mauricio Macri’s victory in the November 22 presidential elections, though Lat Am bond bankers warned that tough times remained ahead for the country.

Argentina will offer a rare high point for Latin American new issuance volumes next year, predict bankers and investors, after voters in South America’s second largest economy elected the most business friendly candidate as their next president.

Mortgage lender Banco Hipotecario on Tuesday sold the first international bond from Argentina since Mauricio Macri was elected president, as optimism continues to be tempered by the challenges the leader will face.

Argentina has been a pariah among international creditors for years, but its new, pro-business president may reopen the door to foreign investors — the question for derivatives players is how they can take part.

Emerging market bond investors say that Argentine lender, Banco Hipotecario could this week price a $250m five year deal in what would be a stern test of market appetite for the country following Mauricio Macri’s election as president.

Mauricio Macri’s victory in Sunday’s Argentine presidential elections signals a new era for the country and should lead to a further rally in the sovereign’s bonds, at least in the short term, say market analysts.

With the most business-friendly candidate boasting a lead of at least eight points in opinion polls ahead of the second round of Argentina’s presidential elections this Sunday, bankers are hoping Argentina can once again play an important role in Latin American bond markets.