Argentina's new bonds up 2-3 points in secondary markets

miércoles 20 de abril de 2016 10:47 GYT

By Paul Kilby

NEW YORK, April 20 (IFR) - Argentina's new bonds were up two to three points in the secondary market early on Wednesday, just a day after they were printed as part of an upsized US$16.5bn crossborder offering - the sovereign's first in 15 years.

With a book that reached US$69bn plus, the deal - EM's largest ever - is unsurprisingly being bolstered by accounts that were either unable to participate in Tuesday's trade or received small allocations.

The long-dated 7.625% 2046s were proving to be the outperformers, jumping three points to a mid market price of 99.25 since pricing at 95.758 on Tuesday, said a New York based trader.

The 7.50 2026s were also up close to two points at 101.90, while the 6.875% 2021s had advanced more than a point to 101.85.

The shorter dated 6.25% 2019s were up several points at 101.60 mid-market.

The enthusiastic response to Tuesday's bond underscored investor confidence in newly installed President Mauricio Macri, who has been quick to reverse the leftist policies of his predecessor.

The new finance team - led by former JP Morgan banker Alfonso Prat-Gay - have also rapidly settled with holdout investors who had effectively blocked the country's access to capital market funding.

Proceeds from the sale will partly go toward paying major holdout investors, putting an end to the country's long-running legal battle in US courts.   Continuación...