Two of the strongest investment funds in the world set opposite positions on Argentine assets and the market wonders who to trust. While Templeton director Michael Hasenstab believes that "Argentina will lead the rise of emerging markets in 2019," BlackRock began spilling local bonds.
"It does not stop selling AY24 (Bonar 24), and has dropped by around 65 million dollars," said LPO, a market operator. This figure, although not significant for this large fund that handles 20,000 million dollars in this country, shows a trend that is happening to all actors.
Operators highlight that investment funds received a cancellation of 56.2 billion dollars in the past 45 days, in what was the biggest current withdrawal since 2008. "We see continuous sales and become one of the most vulnerable emergencies. It is logical that they disarm all positions they can, "said financial analyst Christian Buteler.
Is it one of the largest debt holders in the world, with 30,000 million dollars being spent in 2017, external markets are too dense and very exposed to national newspapers. This situation, added to the record level of risk in the Macri era, which reached 834 points on Thursday, relinquished sales positions that were very difficult to determine when not finding buyers.
BlackRock and Templeton lost more than USD1.1 billion and shook Macri's punishment
A source close to BlackRock, informed the media that they estimated that they could release their assets around 1,000 million dollars before the end of the year. The desperation of this fund is justified by the harsh warnings received from the famous Aladdin risk analysis system. "With an almost perfect risk assessment system like this, there is no possibility of Argentine bonds escaping, yielding 14%," said market analyst Francisco Uriburu.
In turn, together with Templeton, BlackRock was very exposed to the Government Bonds (BOTE) issued by former Finance Minister Luis Caputo to prevent the dollar from exceeding $ 25 on May 15 this year.
On that occasion, they were convinced by the Argentine authorities to disburse around 3,000 million dollars, which due to the subsequent devaluation and acceleration of inflation had accumulated losses of more than 1,100 million dollars.
In fact, it was the first investment fund to hold the majority share of this instrument, hoarding 57.32% of BOTES 2026 and 44.7% of that maturing in 2023, which added more than 6,200 million concentrating on Argentine debt.
That is why optimism about Argentina's economic performance is read as an effort to calm the nimos in the market to increase the chances of finding buyers for their newspapers. This is the typical behavior of Wall Street, which a few days before the outbreak of the subprime crisis, made second-tier banks and investment funds minimize the imminent burst of financial bubble signals.
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