Mensajepor Mr_Baca » Lun Ene 11, 2010 3:29 pm
Argentine Bonds Climb as Investors Buy Amid ‘Political Drama’
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By Drew Benson
Jan. 11 (Bloomberg) -- Argentine debt climbed as investors sought bonds that slid last week when President Cristina Fernandez de Kirchner attempted to tap central bank reserves and fire bank President Martin Redrado.
Benchmark bonds due in 2015 rose for the first time in four days, with the yield declining 15 basis points, or 0.15 percentage point, to 11.63 percent at 9:50 a.m. New York time, according to Bloomberg composite prices.
Investors are buying Argentine debt as the government’s plan to restructure $20 billion in defaulted bonds held out of a 2005 settlement seems unlikely to be derailed by the Redrado showdown, said Enrique Alvarez, head of Latin America fixed- income research at IDEAglobal Inc. in New York.
“There are people who are avid to jump back in on lower prices for Argentine paper,” Alvarez said. “The political drama may put to the test the independence of the central bank, but it hasn’t so far interfered with plans to make an offer to the holdouts.”
Economy Minister Amado Boudou has said he plans to finalize the restructuring offer by the end of this month. Boudou and Cabinet Chief Anibal Fernandez said Jan. 6 that Redrado should step down for not carrying out a presidential decree calling for the creation of a debt payment fund using $6.6 billion of reserves.
Redrado refused and the president fired him by decree a day later. A judge ordered his reinstatement Jan. 8 and he returned to work today as the president appeals his reinstatement. Congressional leaders are slated to meet this evening to debate the matter.
“It will likely be a drawn-out process,” Alvarez said.
Argentina’s peso slid 0.2 percent to 3.7963 per dollar, from 3.7897 at the end of last week.
