Bank of America Reiterates Bullish View in Argentina Dollar Debt

Bank of America strategists are doubling down on their overweight recommendation for Argentina’s dollar bonds, saying the government’s recent negative momentum is already reflected in prices.

• Bond prices reflect a “muddle through scenario,” implying large potential upside should a scenario of “policy improvement” materialize, strategists Sebastian Rondeau, Jane Brauer and Lucas Martin wrote in a note
• “The government’s continued fiscal discipline and strong willingness to pay external debt would prevent bonds from selling off too dramatically in case our ‘bearish’ scenario materializes,” they wrote. “As a result, we think there is asymmetric upside-downside”
• The firm acknowledges the recent negative ...