The two most powerful investment funds in the world occupy opposite positions on Argentine assets, and the market is wondering who to believe. While Templeton director Michael Hazenstab was confident that “Argentina would lead the emerging markets in 2019,” BlackRock began to dump local bonds.
“It does not stop selling the AY24 (Bonar 24) and already withdraws about $ 65 million,” says the market operator LPO. This figure, although insignificant for this megapund, which serves 20,000 million dollars in the country, shows a trend that is observed with all participants.
Operators emphasize that over the past 45 days, investment funds have received cancellations in the amount of $ 56.2 billion, which is the largest withdrawal of flows since 2008. “We are seeing continuous sales and are one of the most vulnerable emergencies. It is logical that they disarm all the positions that they can, ”says Christian Buteler, a financial analyst.
Whether it is one of the largest debt holders in the world, when in 2017, $ 30,000 million was issued, the overseas market was overcrowded and very much influenced by national papers. This situation, added to a record level of risk in the era of Makri, which reached 834 points this Thursday, reveals a selling position that is very difficult to determine when it is impossible to find buyers.
BlackRock and Templeton lost more than 1.1 billion US dollars and rocked the punishment of Makri
Sources close to BlackRock told this Wednesday that, according to their estimates, they could deprive themselves of assets worth about $ 1,000 million by the end of the year. The despair of this fund is justified by the serious warning received from its famous risk analysis system Aladdin. “Thanks to a nearly perfect risk assessment system like this, it’s impossible for Argentine bonds to go through the filter, bringing in 14%,” says market analyst Francisco Uribura.
In turn, along with Templeton, BlackRock is very susceptible to treasury bonds (BOTE), issued by former Treasury Secretary Louis Caputo, to prevent the dollar from exceeding May 15 this year.
In this regard, the Argentine authorities convinced them to allocate about 3,000,000,000 dollars, which, as a result of the subsequent devaluation and acceleration of inflation, have already caused losses in the amount of more than 1,100,000,000 dollars.
Strictly speaking, this is the first investment fund that owns most of these instruments, accumulating 57.32% of BOT in 2026 and 44.7% of those to be redeemed in 2023, which adds more than 6,200 million dollars to Argentina.
That is why optimism regarding the performance of the Argentine economy is seen as an attempt to reassure ill-wishers in the market in order to increase the chances of finding buyers for their securities. This is typical of Wall Street a few days before the subprime crisis began, second-tier banks and investment funds stifled numerous signals about the inevitable explosion of a financial bubble.
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