BofA Says Go Long Argentina 2030 Bonds, Cites IMF Deal Optimism

Bank of America analysts recommend “going long” Argentina’s sovereign notes due in 2030 following a correction in bond prices.

• A staff-level agreement between Argentina and the International Monetary Fund by March would be a positive lift for bond prices in the short-term, BofA strategists including Lucas Martin write in a note dated Jan. 27
• Says IMF program is “not fully priced in,” thanks to investor doubts about the deal’s timing and how much upfront financing could be paid out
  • Expects Argentina to score a $20b Extended Fund Facility program with the IMF that includes $5b to $10b paid upfront
  • Investors ...