This Wednesday it has to get at least $246,000 million. Of a total maturity of $1.1 billion for the entire month, it has already obtained $1.7 billion. In the market, some are betting on a stable dollar until December.
Eduardo Setti
The Ministry of Economy will go this Wednesday for the necessary funds to cover maturities for about $246,000 million, the vast majority in private hands. It does so in a context in which uncertainty over the elections continues to grow, where some portfolio managers wonder if it is not time to buy coverage. The market’s doubts are whether the stability of the dollar will continue until November and December.
The Ministry of Finance reported that in the second bidding of the month under schedule (it must be remembered that an extraordinary call was carried out on September 1) it will make available, for the Common Investment Funds (FCI), Lelites with maturity on the 18th October. On the other hand, as part of the Market Makers program, it will offer a Lecer on January 18 and another Lecer on February 20, 2024. In addition, there will be two Boncers, on May 20 and October 14, 2024, and a Dual Bonus expiring on June 30.
Eduardo Setti’s team understands that there is a certain instability in the peso market. Among the FCIs, there are weeks in which there are rescues and others in which new funds enter. That is why they decided not to make exchanges again in the remainder of 2023. The idea was discussed by Setti with some administrators a while ago, but for now there would not be any instrument that could serve this type of administrators who are positioned in very short term.
About, Adcap Grupo Financiero stated that “the demand for dollar-linked assets remains very strong until 2026; and corporate bonds denominated in dollars.”. Notes that “The search for coverage due to devaluation continues and assets are already seen trading in quite expensive values”. The fund manager points out that “of the peso curve, we prefer the Dual Abril bond (TDA24) based on a possible exchange rate jump of the next government, given the need for a correction of the Real Exchange Rate to order relative prices.” Adcap considers that “the BCRA would be in a position to sustain the exchange rate at these levels of $350 until December.”
For its part, the consulting firm LCG points out in its latest report that with the two placements made by Finance in September, the total maturities for the month, which amounted to $1.1 trillion, were already covered. “Almost $1.7 trillion was made by placing debt indexed to the dollar (62% of the total) and inflation (36% of the total) with maturities in 2024 and 2025”, explains the consultant. The report echoes the higher costs that the government is incurring with a view to the elections, such as tax cuts and the payment of bonuses to retirees. “Financing the fiscal gap of the last four months of the year will require a maturity refinancing rate of 200%,” points out LCG. This would be something that would be happening in September.
Source: Ambito
