HALISTER1: Argentina’s 1-Month NDF, Bogar 2018 Top Picks for Carry: BofA

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
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ezequiel Aguirre (Bank of America Corp)

To de-activate this alert, click here

UUID: 7947283