HALISTER1: Argentina Debt Attractive After Moody’s Outlook Change: BofA

Argentina Debt Attractive After Moody’s Outlook Change: BofA

(Bloomberg) -- More positive rating actions expected, BofA strategist Jane Brauer writes in note.
  • “External debt bonds have some potential to rally further if the search for yield backdrop remains and the government delivers on the fiscal and inflation consolidation”
  • BofA remains overweight on Argentine debt, especially USD 21s to 26; prefers 21s for a more defensive trade and better carry
  • Recommends lightening in local law bonds like Bonar 20 and 24, 3y and 30y global bonds
  • “We see risks tilted to lower Argentina spreads in a scenario of more gradual US rate hikes, given positive news on the economy”
  • NOTE: From March 6, Moody’s Raises Argentina Outlook to Positive

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Jane Brauer (Bank of America Corp)

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