The local capital market operates with a downward trend, with falls in most of the shares of the leading panel. Bonds also fall, as a result of an adverse ruling in London.
Dollar bonds fell sharply Wednesday after the government lost a lawsuit in London on the payments of the so-called “GDP coupons” of 2013, a series of euro-denominated assets that adjusted for GDP growth. The decision was made by the London High Court and the compensation requested by the four plaintiff vulture funds amount to 643 million euros, about US$704 million.
Given this situation, bonds in dollars plummeted to almost 8%. The largest decreases corresponded to the Global 2046 (-7.8%), the Bonar 2035 (-3.2%), the Global 2038 (-3.1%) and the Bonar 2041 (-2.9%).
This confirms it to Ambit Rafael Di Giorno, director of Proficio Investment, who assesses that “the impact of the adverse ruling in London is undeniable. Already in the pre-market the bonds fell between 4% and 5%.” In this sense, he explains that the main problem is that, even though the amount involved of US$1.3 billion may be low, this sentence sets a negative precedent and other plaintiffs may join later.
“In addition, it is added to the ruling against YPF last week, which affects the same box, which worsens the panorama,” Di Giorno adds. Let us remember that a judge from the Second Southern District of Manhattan ruled last week against Argentina in a trial for the renationalization of the YPF oil company in 2012 and ordered compensation that could reach US$20,000 million.
The market had been hit after the government announced towards the end of March an exchange of titles to which official entities must adhere to deliver dollarized holdings in exchange for other pesified ones. In this context, the country risk measured by the JP.Morgan bank shot up 108 units, to 2,463 basis points, compared to a record high of 2,976 units recorded in July 2022.
In the trading round, the leading S&P Merval index lost 0.49%, to 250,244.37 points, where YPF shares fell 0.34%. This benchmark accumulates so far this year an improvement of 23.83%, compared to inflation slightly above 20% in the same period, according to analysts.
Source: Ambito
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