Citi Goes Long Argentina’s Local Bonds After US Intervention

Citigroup Inc. sees room for Argentina’s local assets to keep “decompressing risk” following the US Treasury intervention, even as domestic markets remain vulnerable going into midterm elections.

• Strategists including Ivan Riveros recommend investors go long Argentina’s Bonte bonds due in 2030, FX unhedged
  • “We go with a 0.25% portfolio exposure, targeting a 10% gain with our stop loss at 5%,” they wrote in a report dated Sept. 9
  • Upcoming vote and swings in polls seen as risks to the trade
• On Oct. 9, US Launches Financial Rescue of Argentina, Treasury Buys Pesos

--With assistance from Maria Elena Vizcaino.

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