The market is closely following the confirmation of
a new debt swap in pesos
, after Sergio Massa announced this afternoon that an agreement has been reached with the banks.
This afternoon the conditions of this "voluntary exchange"
will be known,
they agree in the City, the only alternative that Sergio Massa finds to "kick" the maturities of the bonds in pesos scheduled for this year.
As explained by the Minister of Economy, the Treasury will offer
"two baskets"
of bonds to extend the maturities scheduled for this year for next year and the next: one with inflation-adjusted bonds (CER) and another made up of 60% CER and 40% for
dual instruments.
Precisely,
the "dual" instruments are the ones that generated the most resistance in the opposition
, which warned that the Government would leave "a time bomb" for the administration that succeeds it after December of this year.
The dual bonds are a kind of
"insurance against all risks",
because in their composition they offer both coverage against an increase in inflation and against a devaluation of the peso.
These are instruments in pesos that offer investors a return that
is adjusted by the rise in the CER or the wholesale dollar
, whichever offers a better return.
Pablo Repetto, from Aurum Valores, explained: "
The dual bond is like a fixed term that adjusts for UVA or exchange rate variation, whichever of the two gives the investor the best benefit
."
It is not the first time that Massa resorts to this type of instrument to be able to get out of a market saturated with pesos.
In August of last year, as soon as he had arrived at the Palacio de Hacienda,
the minister had already exchanged debt for "double coverage" bonds,
with which he had managed to kick the maturities for this year.
The increase in inflation in the last six months and the expectation of an increase in the gap going forward, makes many sectors see
a warning sign
in this measure.
Salvador Distéfano explained:
"It is the best option for the saver because it is win win: win or win.
There are dual instruments that expire in June, July and September 2023 and there are others that expire on February 28, 2024, always the last day of the month. The June and July dual bonds are adjusted for inflation up to that moment plus a rate of 2. Those that mature in September are adjusted for inflation or the wholesale dollar, whichever is higher, plus an annual rate of 2.25%."
Francisco Mattig, from Consultatio, explained: "The conditions offered are consistent with the current macro situation (100% gap, three-digit inflation, high fiscal deficit, very low and falling net reserves, etc.). But also with the future macro situation: the jump in credit risk that was seen in general is from 2024, given the possibility that the elections will be won by a government whose policy is to give some special treatment to the debt in local currency".
The economist added: "In order not to default on the debt in pesos, conditions such as dual bonds and puts must be offered. It is what it is, that's the way things are today, and this was a fairly long path of accumulated imbalances in the 3 years of management".
look too
Public banks and some private ones came out to support the debt exchange with exchange insurance
Sergio Massa agreed with the banks on a debt swap with indexed bonds and "anti-landing" insurance
