Argentina's Defense of the Peso Makes Its 27% Rates More Tempting
- JPMorgan recommends peso assets, overweight position in Botes
- Argentine issuers may see more demand for local-market bonds
This article is for subscribers only.
Argentina’s central bank is boosting support for the peso, and bond traders smell an opportunity to profit.
The monetary authority has sold more than $1.6 billion of greenbacks in exchange markets this month, helping to slow down the rout that’s made the peso among the world’s worst performing currencies this year. Now that it’s stabilizing near 20.2 per dollar, bond traders are sensing an opportunity to profit from the country’s sky-high interest rates.