Argentina’s 1-Month NDF, Bogar 2018 Top Picks for Carry: BofA
(Bloomberg) -- Selling 1-month USD/ARS non-deliverable forwards at 25% yield, buying Bogar 2018 bond at real yield of 2.6% top trades on strong peso, Bank of America analyst Ezequiel Aguirre writes in note.
- “We expect the exchange rate to outperform in the near term given tight monetary conditions and expectations of successful tax amnesty”
- “We also expect inflation to be temporarily high
in 4Q2016 due to gas tariff increases, favoring short-term inflation-linked bonds”
- ARS forecast to end 2016 at 15.4/USD, below currency forwards of 15.6/USD
- Expects central bank to start cutting rates in late November
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HALISTER1Source: BFW (Bloomberg First Word)
People Ezequiel Aguirre (Bank of America Corp)
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