With markets and assets falling, Argentina becomes a magnet for bargain hunters

Saturday, April 27th 2019 - 09:59 UTC

Full article 8 comments

Argentine assets have tumbled so far, so fast that a few stout-hearted investors say it might be time to buy. “Find me a high-yield sovereign country with an IMF program paying so generously,” said Jean-Dominique Butikofer, the Atlanta-based head of emerging-market fixed income at Voya Investment Management, which oversees about US$ 205 billion. Read full article

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Enrique Massot
This resumes the situation:

“Find me a high-yield sovereign country with an IMF program paying so generously.”

This is what Argentina has been doing for the last three and a half years: Paying unmatched, generous interests so that speculators would invest in the country while making a kill. And as anyone knows, this kind of gambling cannot go on forever.

So tomorrow when Argentina begins asking for renegotiation of its debt -- will have to be done no matter who is in government -- creditors will come in droves to MP comments section to complaint about bad Argentina. They will have made gains well above average -- in full knowledge of Argentina's previous history.
Apr 28th, 2019 - 01:23 am - Link - Report abuse -2
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The Voice
Lol. The spectre of KFC re emerging has spooked the markets and vultures and Banksters are circling.
Apr 28th, 2019 - 09:03 am - Link - Report abuse +1
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Enrique Massot
@TV

What would Kentucky Fried Chicken (KFC) have to do with the current Argentine crisis?

Please enlighten us, TV!
Apr 28th, 2019 - 04:03 pm - Link - Report abuse -2
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:o))
@Enrique Massot

REF: ”What would (KFC) have to do”:

Importing chicken from Argentina at throw-away prices may be an excellent Business-Opportunity! Don't you think so?
Apr 29th, 2019 - 02:38 am - Link - Report abuse 0
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Jonaz_BsAs
Of course, none of these “investors” are lending money to Argentina because they are enamoured in the country. Welcome to human nature, I'd say.

And only complete morons, some of them posting on this site, believe int'l lending practices would be any better if they somehow were made illegal or got curbed in any way. As expected from any adult, Argentina signed the dotted line and should be well aware what it means to borrow money.

I am, however, shocked at the gutless and infinitely incompetent governance of the Macri gov't. In only three years they've managed to destroy Argentina's economy - or what was left of it after 12 years of the Kirchner kleptocracy anyway. And the worst of all: The Macri gov't did it falsely on the behalf of economic liberalism, thus condemning Argentina to yet another bout with destructive populism.

Only the end game of this cycle is left and it won't be pretty. More than any time before, I feel there's no hope at all for this country.
Apr 29th, 2019 - 03:19 am - Link - Report abuse 0
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Enrique Massot
Jonaz is shocked at the “gutless and incompetent governance of president Mauricio Macri” however, he manages to, in the same line, mention the Kirchners' government which, according to his selection of adjectives, was a “kleptocracy” that would have left little standing in the country after 12 years in government.

Next, our absolutely non-biased friend gives us a curious financial theory:

“Only complete morons....believe int'l lending practices would be any better if...made illegal or...curbed.”

Jonaz: When you borrow at interest rates too high. When you borrow too much with maturity dates too close. When half of what is borrowed will go with capital flight. When you borrow just to keep the lights on and therefore have nothing to show up. When you do all these things, you end up like Macri is ending up now.

I do agree with you on one thing: “The Macri gov't did it falsely on behalf of economic liberalism.” Yeah. Macri and his merry gang came to power first thing to fill their pockets.

Just as Cristina wrote in her book Sincerely: “Macri could have been a successful capitalist -- but he chose to be a vulture of the finances.”
Apr 30th, 2019 - 03:47 am - Link - Report abuse 0
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The Voice
Enrique, its a Euphamism for your darling ex President, you know the one that stole all the cakes and crashed the economy.
Apr 30th, 2019 - 03:16 pm - Link - Report abuse 0
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Jack Bauer
Reekie,
Don't sound so pessimistic......sounds like CFK's little book will become the manual she will use to fix Argentina's economy when she's re-elected ....right ? basically she'll only have to fix what she screwed, and Macri made worse....
Do you think she'll blame previous governments for the current mess ?

But don't worry, as Obama would've said, “she is the 'woman' ” !!
May 05th, 2019 - 06:33 pm - Link - Report abuse 0
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