Weekly

Weekly Reports

When It Rains, It Pours

Second week
of March 2020
World financial markets are still walking on a tightrope. At the beginning of the week, oil price dropped almost 20% after Saudi Arabia and Russia started preparing for a price war. The magnitude and speed of the fall put the energy industry at risk, but the impact on the entire international financial system could ...

A Lack of Tools to Manage the Coronavirus “Black Swan”

First week
of March 2020
The Coronavirus outbreak is affecting the world’s financial markets significantly, with a 10% correction in the stock markets and the 10-year American treasury bond yield at historical lows (1.08%). The intensity and duration of the blow on the activity level is still unclear and, in addition, the global economic po...

The Trends Behind the Forced FX Equilibrium

Fourth week
of February 2020
In the short term we face a situation of “forced” equilibrium in the FX market, which is conditioned by the restrictions and taxes that affect the demand of dollars. In the long term, these restrictions and costs must be granted flexibility due to their harmful effects, discouraging exports and affecting the behavio...

Twists and Turns Awaiting Better Definitions

First week
of February 2020
The first chapter of negotiations between the Province of Buenos Aires and creditors regarding the BP21 ended today, when unable to strike a deal with over 75% of bondholders, the local government was forced to service the entirety of the capital payment, USD 250 million, with its own funds and against its original ...

A Swap That Arises as an Alternative Not to Re-Profile

Third week
of January 2020
A priority of Alberto Fernández’s administration is coming to an agreement on debt matters. Particularly, it is trying to give preferential treatment to the debt of Lecaps in pesos. The voluntary debt swap the Government proposed yesterday must be understood within this new philosophy, making an effort to prevent a ...

Highs and Lows from the First Month of the New Administration

Second week
of January 2020
The beginning of Alberto Fernández’s administration was a pleasant surprise on a fiscal note and in the sense that it is trying to solve the debt restructuring in a friendly way. It has been predictable and interventionist regarding sector policies with utilities rates freezes, with Precios Cuidados, and with the re...