UPDATE 2-Argentina bonds barely move; jumbo deal in the works

lunes 29 de febrero de 2016 16:04 GYT

(Changes throughout, adds comments from Pollack)

By Davide Scigliuzzo and Paul Kilby

NEW YORK, Feb 29 (IFR) - An historic agreement between Argentina and it principal holdout investors did little to move the market on Monday as investors readied themselves for a jumbo bond offering from the South American country.

Restructured bonds were trading essentially flat after a court-appointed mediator announced an agreement in principle between Argentina and a group of its most litigant bondholders to settle a long-running dispute over defaulted bonds.

The deal paves the way for Argentina to end a near 15-year isolation from the international capital markets after its 2001 default, with the sovereign expected to raise up to US$15bn as early as March.

"It doesn't have significant market moving consequences, but it is a day of symbolic importance," said Alejo Czerwonko, emerging markets economist in the chief investment office at UBS Wealth Management.

"These are clearly the toughest guys out there and they have reached an agreement with Argentina after litigating over a decade."

Argentina's New York-law 2033 Discount bonds, were trading flat at 117.50-118.50 late Monday morning. That's below their peak of around 120 reached earlier this month when US Judge Thomas Griesa signaled that he would be ready to lift a pari passu injunction preventing payment on the restructured bonds.

"Everybody knew it was a matter of time," said Patrick Esteruelas, a sovereign analyst at Emso Asset Management.   Continuación...