Argentine Bonds Trade Below Restructuring Level on Economic Woes
- Limited rally in bonds has pushed them to pre-pandemic levels
- Government lacks a clear economic plan to exit the recession
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Argentina’s debt is trading below the value established under this week’s restructuring accord, with many investors skeptical the government has negotiated enough fiscal legroom to pull the economy out of its deep recession.
While the century bond issued in 2017 leaped 7.7% on Tuesday to 46.21 cents on the dollar, it remained far short of the average value of the deal, estimated at about 55 cents on the dollar. Even shorter maturity bonds remain far from those levels.