UPDATE 1-Argentina bonds give back gains on profit taking
(Updating story throughout with latest bond levels and trader comments)
By Paul Kilby
NEW YORK, Nov 23 (IFR) - Argentine bond prices were giving back some earlier gains on Monday as investors took profits following a widely expected victory for market favorite Mauricio Macri in the presidential elections over the weekend.
Bonar 2024s were being offered at 103.00 after being bid at that level earlier today, while dollar discounts were bid at 115.50 after hitting 116.00 earlier in the session.
"As we expected sellers are coming out," said Joaquin Almeyra, a fixed-income trader at Bulltick. "The market is happy about a Macri victory but that was already priced in and the next steps will not be easy."
Argentina debt prices are likely to go through a period of adjustment over the next few months as holders await new buyers seeking to benefit from any eventual upside in economic growth and a resolution with holdouts.
"There are a bunch of investors who have been involved in Argentina waiting for this and for someone to take them out of the trade," said Jody LaNasa, managing partner at hedge fund Serengeti Asset Management
"They are waiting for the next generation to buy and that probably will take a couple of months."
The relatively restrained rally underscores investors shifting focus to the challenges faced by the incoming administration in implementing policy changes and ending the decade-long battle with holdout investors. Continuación...