Tuesday, August 9, 2022

Government itself will try to take advantage of antitrust for funding

The government will try to take advantage of the new outbreak of mistrust in the market to improve its chances of getting funding, At a crucial moment: when the possibility of having to resort to financial support from the Central Bank (BCRA) through issuance was almost exhausted, given that by the end of September it had received only $35,000 million more using the smaller machine. could do,

Tomorrow it will seek at least $265,000 million among investors, Through the issuance or reopening of a bond in four Treasury bills and pesos. But three of these instruments will offer coverage against inflation (two are adjustable letters by CER—lesser—due to expire in January or May of next year) or overvaluation of the official exchange rate (bonds). dollar linked T2V3 will expire at the end of July 2023), something for which it appeals to try to improve its capture rate while trying to avoid short-livedness.

With the Lakers (which was not present at the first auction of the month) and adjustable bonus per dollar The condition is to extend the maturity period to 2023, but without entering the election period, as the longer segment of the CER curve suggests that doubts remain about stability. And T2V3 is trading with a yield of 2.6% below the depreciation, but it is one of the ‘cheapest’ given the circumstances”, he observed from Delphos Investments, when reviewing the menu designed by the Ministry of Finance. , now by Eduardo Setti.

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And, in the case of rates adjustable for inflation, it provides a rate that will be defined according to what the market is offering, after the purging of that demand and to test appetite in the context of high volatility.

They entice again with coverage against a weight that won’t stop melting.

Official strategy is complete making “net” interest rates in pesos somewhat more attractive, Trying to replicate that recipe, in the first tender of the month, the BCRA was granted a privilege to banks, after ensuring affordable access to a sale option for those papers, allowing them to get a mattress of peso “Even after being amended to reduce the minimum liquidity regulation from 120 to 90 days to integrate the minimum period of instruments admitted and after integrating these papers into their rate broker,” Facimax Valores said. noted.

In this case, the reopening of the lead with which the channel was opened to receive funding will do so at a minimum nominal rate of 64% (which represents an effective rate of 80.8%), which is less than one Half a point higher. offered. at the beginning of the month. “It’s clear that it wants to continue to capture that demand from banks,” said Adrian Yard Buller from That Financial Boutique.

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To validate that rate (or something even higher) the Ministry of Economy Also, it would leave the door open so that the BCRA could order a new revision in the minimum rate that would force banks to pay for traditional fixed terms, Which has remained at 53% annualized nominal (equivalent to 4.4% monthly) since mid-June, despite a pick-up in inflation.

The last instrument offered is the Special Demand Liquidity Letter (Lelite) of General Investment Fund (FCI), which is due to expire in just 18 days and with which it pays an indicative rate of 51.6% p.a. would demand approximately $20,000 million. ,

you have to remember that The government reaches the point that it faced about $330,000 million at this time of the month after the original maturity had shrunk by more than 40%. Thanks to a swap in which BCRA was the central leader, that came from the buyback of bulk debentures in June. This allowed them to be somewhat more comfortable at this time, although it forced them to adapt to market demands, as A large part of what is ending is in private hands.

It will be a test in view of the $3.7 billion in debentures to mature in the rest of the year, Since August, and especially in the case of $1.1 trillion that must be refinanced in September alone.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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