JPMorgan Recommends ‘Taking a Breather’ on Argentine Peso Bonds

JPMorgan analysts recommend “taking a breather” on Argentine peso bonds amid FX intervention, according to a note published late Friday by emerging market analysts led by Gisela Brant.

• The team pointed to mounting pressure on external accounts from rising tourism spending and pre-midterm election uncertainty, warning these factors could weigh on near-term market stability
• Weak peso led to central bank intervention in derivatives, according to report
• “We remain constructive on Argentina’s medium-term prospects, but prefer to reduce risk for now,” according to the report
• NOTE: May 9, JPMorgan to Rent 20 Floors in Historic Buenos Aires Office Deal
• NOTE: Apr. ...