Key for investors: how to cover yourself amid the surge in the blue dollar and financial markets

Key for investors: how to cover yourself amid the surge in the blue dollar and financial markets

In the midst of this exchange rate volatility, it is important to ask, what instruments could serve as a hedge?


Parallel exchange rates the blue dollar, the MEP and the CCLstarted a strong bullish rally after four months of exchange rate pax. So The illegal bill jumps to almost $1,300, while the stock ones are around $1,200. In the midst of this exchange volatility, Argentine bonds fall 5% and the country risk grows 80 points. Given this, it is important to ask, What instruments could serve as coverage?

For Francisco MartinHead of Operations Take Investments commented with Ambit that beyond the purchase of the MEP dollar“where one gets physical dollars; the other coverage that the Stock Market offers are the cedars“. “The value of these assets is made up of two variables, the value of the underlying in the American market and the value of the dollar. So if the price of the dollar rises, the value of Cedears in pesos also rises,” the expert revealed.

For its part, for Rafael Di Giorno of Profession in dialogue also with this mediumopined that “for hedge against exchange rate volatility investors often use Low volatility cedars how to be the one Coca Cola and if they are investors They try to protect themselves in dollars, but taking Argentine risk, you can access the BOPREALES“.

To its turn, Juan Martin YanzonHead Trader of Southern Cone Investments also agreed, in conversation with Ambitthat the BOPREALES would function as an exchange hedge against this context of sharp rise in parallel exchange rates and for those Sovereign bonds in dollars “already had risk.”

Blue dollar, MEP and CCL: the bullish rally that alerted investors

He Dolar blue reached his historical nominal record this Wednesday, May 22, and It is listed at $1,240 for purchase and $1,270 for sale.according to a survey of Ambit in the caves of the City.

Thus, the informal dollar rises another $40 in the dayafter touching $1,280 earlier. It advances close to $160 so far this week, to touch its historical nominal maximum recorded on January 24. Thus, the gap stands at 43.8%, the highest level since the beginning of February.

For his part, the MEP dollar rises 1.9% ($19.55) to $1,189.83 and the spread with the official one stands at 33.6%. While the dollar Cash with Settlement (CCL) advances to 1.6% ($15) to $1,210.51, so the gap with the official is located in 36.01%.

Source: Ambito

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